"Leasing? We only use that for cars and forklifts."
We hear something along these lines very often from companies.
For us, that's a clear signal that there's plenty of untapped potential.
Because leasing is far more than just a procurement method for company vehicles.
Please don't get me wrong –
for cars, trucks, forklifts, and IT hardware, mobile phones, etc., Operate Lease is usually the best solution!
But there are so many more possibilities! #LeasingCanDoMore
When used strategically and structured correctly, leasing is a highly effective financing technique that works excellently for almost all movable assets – from machinery and photovoltaic systems to (ERP) software, whether on-premise or SaaS.
Why?
🔹 Because leasing generates additional liquidity and relieves pressure on bank credit lines!
🔹 Because it offers balance sheet and tax advantages!
🔹 Because it runs longer and (no April Fool's joke!) is often cheaper than traditional loans or revolving credit facilities – and cheaper than (Nordic) Bonds and Unitranches anyway!
👉 Especially for LBOs and sub-investment grade credit ratings!
What does this mean for you?
👉 Your existing loan or bond agreements often leave you more room to maneuver than you're currently using.
In most cases, the documentation permits "Finance Lease" up to certain maximum thresholds ("Basket") and "Operate Lease" without any cap – without further consultation with the banks.
👉 Anyone not fully utilizing this "Basket" is leaving savings on the table – usually in the six-figure range.
Make use of the instruments available to you!
👉 Let's analyze your options together!
#LeasingPilot #Leasing #CFO #Treasury #PrivateEquity
"Leasing? We only use that for cars and forklifts."
