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.
The term leasing comes from the English language and means “to rent”. But despite its similarities to renting, leasing also reflects a wide range of essential differences which quite often make leasing the solution of choice.
– Depending on the contract type - the purchase of the leasing object is expressly offered after the expiration of the lease term.
– The investment decision is made by the lessee. You select the leasing object as well as the supplier.
– Administration and maintenance are the lessee’s responsibility. You act as the owner. For example, you ensure maintenance and take out any necessary insurance. These tasks can also be performed by Deutsche Leasing.
– Leasing is a strategic accounting and financing control instrument. Leased objects are entered in the balance sheet by the leasing company, not the user. The leasing rates are tax-deductible operational expenses.
– Contract terms can be freely arranged. Depending on the contract type, the realization risk can be assumed by the leasing company after the expiration of the contract. This gives you the flexibility to balance out economic fluctuations. And it helps you to optimally manage your innovations.