Financing/Leasing

The purchase of a car transporter or a trailer, is for many companies an investment decision for the next 4 – 5 years.

The entrepreneur is faced with the decision whether to buy, finance or lease the truck (trailer).

For financing, we basically offer you various options:

  • Purchase with equity (equity capital)
  • Classic financing / loan with or without final instalment
  • Hire purchase
  • Leasing

Financing: The Classic Way

In the case of financing via a bank loan, the contract terms can be designed flexibly. Terms of 12 to 72 months are possible. The loan is paid back to the bank in monthly instalments.

In addition, there is the option of financing with a final instalment. Financing with a final instalment is characterised above all by the low monthly burden in the form of low monthly instalments, since a large part of the loan amount is only repaid at the end of the term in the form of a final instalment as a one-off payment. In principle, in the case of financing, the financed object is acquired by paying the final instalment. This means that the object, the truck or trailer becomes your property and at the same time a fixed asset for your business.

Hire purchase: Hire purchase is the alternative to leasing and credit financing

Hire purchase combines the advantages of a leasing and a credit purchase. The hire-purchaser rents the vehicle, so to speak, and pays rent for it in the form of monthly instalments. Terms of 12 to 72 months are possible. At the end of the term, the vehicle becomes the property of the lessee. This means that the object, the truck or trailer becomes your property and at the same time a fixed asset for your business. The rental instalments paid are therefore calculated for the repayment. Classic loan applications are often rejected by banks. Reasons for this can be a lack of collateral or a too low equity ratio. Hire-purchase is then often a successful alternative to still be able to make the planned investment.

Leasing: Leasing is an alternative to credit financing

Leasing is off-balance sheet and increases the company’s own liquidity. It is important to note that a leasing contract is a contract for the transfer of use. No capital is tied up in fixed assets for leased goods. This increases the company’s liquidity. In addition, no debts are shown in the balance sheet for leasing. This means that the balance sheet remains unaffected, which brings advantages in the case of necessary further financing or follow-up financing.

With leasing, the lessee does not acquire ownership of the object, but the right to use it during the leasing period. If you choose leasing, you benefit from the following advantages:

  • Your own financial resources are not burdened (house bank).
  • The leasing instalments are considered tax-deductible business expenses.
  • The leasing object is not capitalised in your balance sheet. Accordingly, the rating is not negatively affected.
  • The lessee has planning security through fixed monthly instalments.
  • Leasing helps to stay at the cutting edge of technology

At the end of the leasing period, the object is returned and can be exchanged for a new one. This way you stay up to date with the latest technology.
All leasing contracts are off-balance sheet. The expenses for leasing reduce your operating result and thus your taxable profit.

Leasing partial amortisation contract – makes innovations affordable

The lease partial amortisation contract with surplus revenue sharing has a fixed contract term (non-cancellable lease term). The lease payments made during the contract term do not lead to full amortisation of the lessor (= partial amortisation). At the end of the fixed lease term, the leased asset is sold on the open market on the basis of an appraisal, if possible. If the proceeds from the sale (net sales proceeds less costs) exceed the contractually agreed residual value, you are entitled to 75% of the excess proceeds (sales proceeds less residual value > 0). In the event of a shortfall in proceeds (realisation proceeds less residual value < 0), the difference between the realisation proceeds and the contractually stated residual value must be compensated by you in full. With the leasing partial amortisation contract with surplus proceeds participation, you can benefit from the good maintenance of your object. This contract is therefore suitable for objects that retain their value, especially commercial vehicles

Leasing full amortisation contract – with secure purchase option

A lease full amortisation contract has a fixed contract term (non-cancellable lease term). The lease payments made during the contract term result in full amortisation of the lessor. At the end of the contract term, the lessee has the following choice:

  • You exercise your contractual purchase option. The purchase price is the residual book value or the market value if it is lower than the residual book value.
  • You return the property. No further payments are to be made or
  • You agree on a contract extension.