--- alternate_lang: de date_added: '2026-07-10T08:11:28.243000+00:00' date_modified: '2026-07-10T10:00:14.185272+00:00' description: The Interest Barrier – The Elephant in the Room When Considering Financing Options. πŸ‘‰ Please evaluate your financing costs on an after-tax basis! The negative i keywords: - LinkedIn lang: en title: The Interest Barrier – The Elephant in the Room When Considering Financing Options. type: article url: http://leasing-pilot.com/en/news/the-interest-barrier-the-elephant-in-the-room-when-considering-financing-options/ --- 1. [News](/en/news/) 2. The Interest Barrier – The Elephant in the Room When Considering Financing Options. # The Interest Barrier – The Elephant in the Room When Considering Financing Options. The Interest Barrier – The Elephant in the Room When Considering Financing Options. πŸ‘‰ Please evaluate your financing costs on an after-tax basis! The negative i ![The Interest Barrier – The Elephant in the Room When Considering Financing Options.](/media/thumbs/news_image/linkedin-c7b60d0a5f.webp.400x400_q85.webp) The Interest Barrier – The Elephant in the Room When Considering Financing Options. πŸ‘‰ Please evaluate your financing costs on an after-tax basis! The negative effects of the #InterestBarrier affect far more companies than one might expect: πŸ”Ή Large corporations (including well-known, publicly listed groups), often because their value creation takes place largely abroad and is taxed there, while holding and financing expenses are allocated in Germany; πŸ”Ή Restructuring and turnaround companies; πŸ”Ή And of course Leveraged Buyouts (#LBO), since the higher use of debt is already part of the definition. The affected companies cannot fully deduct their interest burden from taxable income for tax purposes. This means that the actual tax liability turns out to be higher than the commercial result (or the financial model) would suggest, and that interest-bearing financing instruments such as loans, bonds, private debt, etc. are more costly than they appear to be. Dear CFOs, Dear Treasurers, if your company is subject to the interest barrier, you should evaluate financing alternatives based on their after-tax costs! The solution is straightforward: πŸ‘‰ Leasing is not affected by the interest barrier and offers – among other advantages – attractive financing terms. Let's talk! P.S. The tax disadvantage faced by many companies due to the interest barrier, as well as the benefits of leasing, are rarely discussed in trade publications or in the public discourse… The elephant in the room! #PrivateEquity #CFO #Treasury [View on LinkedIn](https://www.linkedin.com/feed/update/urn:li:activity:7481258780102565888/)