10 good reasons for leasing

There are lots of good reasons in favour of financing through leasing: if you have the feeling for at least 3 of the following reasons that this could be something for you, you should contact us.

1. Precise fit: Depending on their specific needs, lessees can decide which investment item is to be acquired, at what time and from which supplier.
2. Planning reliability: The level of the leasing instalments and the duration of the leasing contract are fixed from the beginning.
3. Flexibility: The lessee runs the purchase negotiations for the investment item. The lessee can determine with the lessor who is later to be responsible for maintenance and servicing, how the level of the usage fee is defined during the leasing period, how long the leased item is available and how it will be further used at the end of the contract period.
4. Liquidity effects: Because the leasing company takes over the financing of the investment item, there is no withdrawal of liquidity and/or expansion of external financing at the time of the investment. The costs of the investment are distributed via the leasing instalments according to the "pay as you earn" principle throughout the period of time in which earnings are achieved with the leased item.
5. Balance sheet effects: Because the lessor is the legal owner of the leased item and records it in his balance sheet, there is no balance sheet extension for the lessee. This has positive effects on the equity ratio, which is very important, not least from the point of view of Basel II.
6. Tax effects: Leasing instalment payments are fully tax-deductible immediately as operating expenses. In the case of financing through equity capital, in contrast, only the depreciation can be used to reduce taxes.
7. Efficiency effects: Leasing companies such as VPL Leasing have long offered supplementary services in addition to the pure financing function, such as fire insurance and the ongoing maintenance of leased equipment. Lessees thus have the opportunity to improve their efficiency through targeted outsourcing.
8. Innovation effects: The high degree of flexibility in the duration of leasing contracts makes it easier for companies to adapt their equipment constantly to fast-moving technological changes. The leasing provider takes over a major part of the re-use risk for plants that are no longer at the cutting edge of technology but are still absolutely suitable for use.
9. Utilisation effects: Fluctuations in capacity utilisation due to the economic situation can also be balanced out more flexibly through the use of leasing than if the investment items are purchased.
10. Sales effects: In addition to its use within the company, leasing is becoming more and more important as a sales promotional tool, especially because suppliers need to offer their customers not only high-quality goods and services but also, increasingly, optimum financing through a competent partner.

We look forward to hearing from you.