In law leasing is the "loan of a capital object for use over a specific period of time in return for financial consideration." In fact it represents an alternative form of financing investments. It is a valuable instrument of strategic corporate management.
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The term leasing comes from the English language and means “to rent”. But despite its similarities to renting, leasing reflects also reflects a wide range of essential differences which quite often make leasing the solution of choice.
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| – | Leasing comprises components of financing. Depending on the kind of agreement, purchase of the leased object after expiry of the basic leasing period may be expressly offered from the outset.
| | | – | The decision to invest affects the lessee. He or she must select the leasing object as well as the supplier.
| | | – | The responsibility for administration and maintenance lies with the lessee. You act as an owner in most cases. You ensure, for example, that the leased object will be properly maintained. And you choose where the necessary insurance will be taken out. You may, however, also leave this task to Deutsche Leasing.
| | | – | Because leased objects are carried on the leasing company's balance sheet (not the user's) and leasing instalments are tax-deductible business expenses, for you leasing is an off-balance-sheet and strategic control instrument.
| | | – | Depending on the kind of agreement, the assumption of the risk from utilisation of a returned leased object by the leasing company after expiry of the agreement makes it easier for you to cope with economic fluctuations and to manage innovation. | |
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