You are investing and your asset will only be delivered/accepted in 2027?
And you need to make #downpayments?
Then the investment will appear in your annual financial statements as of December 31, 2026 as follows:
🔹 You draw on your credit line for the down payment and increase your financial liabilities
🔹 On the asset side, the down payment is recorded as "Down payments made and assets under construction"
👉 Result: The order is P&L-neutral, but the balance sheet expands and your equity ratio decreases!
Our recommendation:
👉 Convert the investment to leasing!
Leasing companies can step into the order, take over the down payments, and reimburse you for the down payments already made before the December 31 reporting date.
Now imagine how this leasing transaction would be reflected in your annual financial statements under HGB:
👉 Exactly! Not at all!
Your equity ratio is back to where it was before the order was placed!
However:
🔹 Some leasing companies will sidestep the issue and only offer you a sale & leaseback in 2027 after the asset has been accepted.
🔹 Some leasing companies will – depending on the amount of the down payments – bring up the topic of expectant rights and claim their legal department needs too long to clarify the matter!
👉 Our clients benefit from our comprehensive advisory approach and our ability to implement financing solutions with the right leasing partners – in a timely manner!
As a side note: The pre-financing of down payments by the leasing company is also more cost-effective for sub-investment grade companies such as #LBOs and is not subject to the #interestbarrier – just like the entire leasing financing!
Let's talk!
#Treasury #CFO #LBO #PrivateEquity
You are investing and your asset will only be delivered/accepted in 2027?
