How to automatically improve your cash flow

Leasing

Leasing your capital assets means maintaining your liquidity. This is essential for continued investment and growth. Leasing is possible up to 100% of the purchase value. Your repayment obligations run directly proportional to your cash flow. Moreover, it can provide you with tax benefits.

What is leasing?

What is leasing? The definition of leasing is: to finance capital equipment. It is a form of credit. You lease a capital asset from the leasing company for a predetermined monthly fee and a predetermined period. You become the owner of the capital asset immediately, or you have the option to purchase the asset at the end of the contract.

In the Netherlands, leasing as a form of financing is the second largest in the business world in terms of volume. No less than three-quarters of all leasing is done by SMEs; leasing is a form of financing you can’t ignore.

What can you lease?

Nowadays, you can lease a variety of capital goods for business purposes. Think of:

  • Passenger cars
  • Rolling Stock
  • Production equipment
  • Computers
  • Business premises

Forms of leasing

The two primary forms of leasing are:

  • Financial lease
    Financial leasing is a form of credit. The leasing company purchases the asset, and you lease the asset from the leasing company and pay a fixed monthly amount for a predetermined period. You are the direct owner of the asset and therefore bear the economic risk, but also the possible tax benefits such as investment deduction.
  • Operational lease
    An operational lease is a form of renting. The leasing company owns the asset (both legally and economically). You have the right of use. You can also include maintenance, repairs, and insurance in the contract. You then pay extra for these provisions. At the end of the term, the asset goes back to the leasing company. You also have the option of buying it at the then current market value or a pre-agreed price.

What does leasing cost?

Financial leasing is cheaper than operational leasing, the latter is more expensive because the leasing company runs more risk. Therefore, an operational lease is also more expensive than a traditional loan from the bank. However, you do 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.
  • Immediate income after contract activation.
  • No unnecessarily heavy repayment obligations due to an acceptable term related to the earning capacity of the production equipment.
  • Convenience. The leasing company is responsible in case of necessary repairs or wear and tear.
  • You remain competitive. In the case of capital assets that are developing rapidly technologically, you can quickly and easily keep up.
  • Increase your independence from your existing bank or financier.

The added value of Xolv Finance

  • We have excellent contacts with domestic and foreign finance companies.
  • We ensure the best conditions on competitive terms.

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