The advantages of leasing for companies

The advantages of leasing for companies can be found on both sides – namely on the seller’s side as well as on the buyer’s side. Leasing is therefore an absolute win-win situation for everyone involved in a business. In this article, we explain the specific advantages of leasing for companies.

The advantages of leasing for sellers

As a salesperson, leasing opens up completely new possibilities for you. Thanks to leasing, you can easily use various sales strategies to increase turnover. But not only that, you simply reach many more customers and can look forward to secure revenues.

You can find an overview of all the advantages of leasing for sellers here.

Increased sales thanks to leasing

As a seller or manufacturer of a product, you can increase your sales with leasing. Because by offering your customers financing – in the form of manageable installments – you lower their purchase threshold. As a result, you sell more and therefore make more turnover.

However, leasing not only enables you to make more sales to your existing customers, but also to attract new customers. This is because the simple financing and affordable installments make expensive products accessible to many more potential customers at once. Your goods thus become interesting and affordable for a larger customer group.

Implement simple strategies such as cross-selling and upselling with leasing

Thanks to leasing, you as a salesperson can also easily implement revenue-boosting strategies such as upselling and cross-selling. This is because you can simply include additional products, higher-value versions or additional services in the monthly rate. Your customers will never be put off by the total price, but will be happy to pay affordable rates.

Faster conclusion of purchase thanks to leasing

Especially if you sell expensive products that your customers cannot simply pay for in cash but may need financing, leasing speeds up the purchase process. You can do the work for your customers and offer financing directly via installments. Your customers save themselves the trip to the bank or a credit institution and can buy from you immediately.

Get money immediately with leasing as a seller

Although you offer your products in installments, you can always look forward to secure revenues. You can also concentrate fully on selling and acquiring new customers. There is no need to write reminders for late payment.

Once you have sold a product, you immediately receive the money from your leasing partner. They then take care of your customer’s monthly payments while you are already doing new business.

The advantages of leasing for buyers

But leasing offers advantages not only for you as a seller. The buyers of your products can also enjoy advantages over financing by means of loans or paying the full amount at once.

Leasing is balance sheet-neutral for buyers

The leased asset is off-balance sheet for the buyer. The leased asset appears in the lessor’s balance sheet, but not in that of the lessee. This has a positive effect on your buyer’s equity ratio.

Leasing installments are tax deductible

Your customers can fully deduct the leasing installments from their taxes as business expenses. This offers tax advantages compared to purchasing via credit financing. This is because the acquisition costs of the product can only be deducted as depreciation spread over the expected useful life.

Leasing enables pay-as-you-earn financing

Pay as you earn. That is leasing. Companies without a lot of equity or good liquidity in particular can afford expensive products and large assets thanks to leasing, as they pay the purchase price in manageable monthly installments. They can use the product and earn money while they are still paying for it. In this way, they finance it while they work with it – pay as you earn.

Buyers retain good liquidity

As your customers do not have to make large outlays at once to buy your product, but pay monthly installments, they retain their good liquidity. The installments are also manageable, easy to calculate and do not change as they are not affected by interest rate changes. This gives your customers greater financial flexibility.

Leasing offers independence from banks

Leasing offers your customers independence from banks and credit institutions. All they have to do to buy an expensive asset is sign the leasing contract you offer. Buyers do not have to go to the bank and can use their newly purchased product immediately and earn money with it. Existing credit lines remain unaffected.