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? 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.
Nowadays, you can lease a variety of capital goods for business purposes. Think of:
The two primary forms of leasing are:
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.
Want to know more?
Part of the Ecclesia Group