Financing

If you are certain that a purchase will remain in use for the long term and will definitely become your property, installment plan / credit financing is an attractive financing solution. The hire-purchaser then pays the purchase price back to the financing partner in installments over a fixed term. The acquisition and financing costs are fully amortized during the installment plan period. In contrast to leasing, with installment plan the VAT on all installments specified in the contract is due immediately. This means that the hire-purchaser becomes the economic owner of the property from the outset and writes it off on his own balance sheet. At the end of the term, legal ownership is also transferred to the hire-purchaser.

Advantages of leasing for small and medium-sized companies:

• Conservation of liquidity and equity;
• Cost neutrality: your leasing object generates its own installments
• Flexibility: your credit line at the bank remains unaffected
• Tax advantage: your leasing installments are fully tax-deductible as operating expenses
• Transparency: your desired contract term gives you a clear basis for calculation

Here is a short LEASING explanatory video: https://www.youtube.com/watch?v=A0YjzgrQV5s