How to automatically improve your cash flow

Leasing

Leasing your capital goods means maintaining your liquidity. And that is essential to continue investing and growing. Leasing is possible up to 100% of the purchase value. Your repayment obligations are directly proportional to your cash flow. Moreover, it can give you tax benefits.

What is leasing?

What is leasing? The meaning of leasing is as follows: financing capital goods. It is a form of credit. You lease a capital asset from the leasing company for a predetermined fee per month and for a predetermined period. You immediately become the owner of the capital asset or you have the option to purchase the asset at the end of the contract.

In the Netherlands, leasing as a form of financing ranks second in terms of volume in the business community. No less than three quarters of all leasing is done by SMEs. Leasing is rightly a form of financing that you cannot ignore.

What can you lease?

Nowadays you can lease a multitude of capital goods for business purposes. Think about:

  • passenger cars
  • Rolling material
  • Production equipment
  • Computers
  • Business premises

Forms of leasing

The two main types of leasing are:

  • Financial lease
    Financial leasing is a form of credit. The leasing company buys the good. You lease the property from the leasing company and pay a fixed amount monthly for a predetermined period. You are the direct owner of the property and therefore also bear the economic risk, but also the possible tax benefits such as investment deductions.
  • operating lease
    Operational lease is a form of renting. The leasing company owns the property (both legally and economically). You have the right of use. You can also include maintenance, repairs and insurance in the contract. You pay extra for that. At the end of the term, the property generally returns to the leasing company. You can also buy it at the then current market value or at a pre-agreed price.

What does leasing cost?

Financial lease is cheaper than operational lease. The latter is more expensive because the leasing company runs more risk. Operational lease is therefore more expensive than a traditional bank loan. However, you also get something in return: convenience and less risk.

What can you lease?

  • Object financing up to 100%.
  • You pay a fixed amount per month.
  • Your working capital remains intact.
  • Immediately proceeds after entering into contract.
  • No unnecessarily heavy repayment obligations due to an acceptable term, related to the earning capacity of the means of production.
  • Ease. The leasing company is responsible in the event of necessary repairs or wear and tear.
  • You remain competitive. You can quickly and easily get involved with capital goods that are developing rapidly technologically.
  • Increase your independence from your existing bank or financier.

Added value Xolv Finance

  • We have good contacts with domestic and foreign financing companies.
  • We provide the best terms and conditions.

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