Because the (asset) item is not capitalised on your balance sheet, this form of leasing is called ‘off-balance-sheet leasing’. You pay us a premium for the use of the item being financed. We are the legal and beneficial owner of the asset. If the contract expires you can either extend into a secondary period or return the equipment to us.
The advantages of an operating lease
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Equipment is not shown on the balance sheet
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No negative residual value risk
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Financial ratios can be improved
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Because contracts are of relatively short duration, you can modernize faster
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Ability to make investments for which you can receive environmental grants (such as EIA, VAMIL, MIA, see also environmental lease)
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Monthly charges that you can see clearly
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You have the option of financing the equipment 100%
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Your working capital is unaffected
New and expensive equipment is immediately within reach Your monthly charges are determined by the purchase price, the interest rate, the term of the contract and the residual value of the asset. And with us, you can expect highly favourable residual values which ensure that the monthly charges you pay are as low as possible.