Mobile Asset Leasing solutions designed to meet your requirements

Leasing contracts exist in a variety of forms. If the contract needs to be accepted as tax efficient, it needs to fulfil certain German legal regulations which are governed by the Federal Ministry of Finance. In principle one distinguishes between two forms of leasing contracts – the finance lease and the operate lease. These two options are merely the pillars of a broad spectrum of possibilities.


We are happy to advise you in detail on the different traditional leasing models.

Finance Lease

In the case of finance leasing the risk of investment is with the lessee and the credit risk with the lessor. The leased asset is shown in the balance sheet of the lessee and usually transferred to the lessee at the end of the lease term. Features of this model are mid-term to long-term contracts with a fixed basic rental period. We happily provide advice based on your requirements with regards to the suitable form of contract: full amortisation, partial amortisation or callable contracts.


Benefits

  • Maintaining liquidity
  • No exploitation or strain of the credit line with the bank
  • Special leasing payments and leasing rates are tax-deductible
  • Optional right to purchase the leasing asset

Operate Lease

An operate lease focuses on the short term use of the leasing asset. The risk of investment and therefore the beneficial ownership of the leasing asset lies with the lessor. As a general rule short-term contracts are concluded. The lease contract complies largely with a rental agreement according to civil law. The essential feature of an operate lease contract is that acquisition and finance costs are usually not paid off during the contractual period. The lessor can only achieve full amortisation if the equipment is leased out several times.


Benefits

  • Short-term contract increase flexibility
  • Simplified notice periods
  • Balancing of order fluctuations
  • Compensation of machine failures
  • Balance sheet reduction of lessee

Lease-Purchase

In case of a lease-purchase the economic ownership of the leased asset is transferred to the lessee immediately. The purchased economic asset is included in the balance sheet from the beginning and paid off in leasing rates. At the end of term the lessee is the owner – without having to take out a loan.


Benefits

  • Preservation of own liquidity
  • Immediate activation of the lease-purchase asset in the balance sheet of the hire purchaser
  • Of interest in case of certain funding models (for instance investment grants)

Sale and Lease Back

Sale and lease back is a specific leasing model. Fixed assets are bought by the leasing company at a determined current or book value and at the same time the owner leases it (as a lessee) on a long-term basis to retain exclusive possession and use. The current value is the value which an investor is prepared to pay for the fixed asset considering expenses for removal, transport, reconstruction and new start-up costs.


Benefits

  • Gain in liquidity with unlimited use of machinery and assets
  • Improvement of key balance sheet figures by balance sheet reductions
  • Book profits are generated by raising hidden reserves (if the current value is higher than the book value)

Sale and Rent Back

Sale and rent back is a specific leasing model which is ideally suited to improve the liquidity of a company. Comparable to sale and lease back the owner sells its used, mobile assets in order to lease it back at fair conditions. The important difference to the sale and lease back model is: in case of a sale and rent back the company remains the economic owner and the assets stay on the balance sheet for depreciation purposes.


Benefits

  • Gain in liquidity with unlimited use of machinery and assets
  • Assets stay in your balance sheet for further depreciation purposes
  • Benefits of investment grants are preserved
  • Additional securities are not required

Direct and indirect Leasing

The distinguishing factor of direct and indirect leasing is the dependence on or independence of a manufacturer. In case of direct leasing the manufacturer is also the lessor. In case of indirect leasing the leasing company purchases the asset from the manufacturer first and leases it back to the lessee.


Benefits

  • Direct leasing suits almost any credit rating as leasing is a sales tool of the manufacturer
  • Indirect leasing is more flexible as a change or exchange of product is not linked to a certain manufacturer