Online Leasing is the quick and easy way to acquire a new machine
Use without buying. Leasing gives companies the opportunity to stay at the cutting edge of technology all while preserving liquidity. Thanks to Online Leasing, SMEs can lease vehicles or capital goods even more efficiently and flexibly.
Vehicle and capital goods leasing increases a company's liquidity
Leasing is common in the case of vehicles for private use. But it can also be used to finance capital goods or company vehicles, such as new construction machinery, a complete mountain railway, or a CT scanner for a medical practice. This form of financing is perfect for companies that want to preserve liquidity and improve their return on equity. Leasing can also be an attractive financing solution if a company wants to expand its core business and remain at the cutting edge of technology, but doesn't have sufficient financial resources to do so.
Leasing for companies is similar to leasing a private car. The bank purchases the selected asset directly from the supplier and then assigns it to the company for use during the term stipulated in the lease agreement. Leasing is ideal for SMEs to bridge a temporary scarcity of resources, as a long-term financing option, or to optimize the financing mix. With leasing, cash and other liquid assets remain in the company and are available to pay wages, rents, and other expenses. The lease payment is made from monthly earnings and it is possible to plan costs very precisely.
Companies can make investments even faster with Online Leasing
Vehicle or capital goods leasing is even faster and more efficient thanks to Online Leasing. Regardless of whether you're away on a business trip or working from home – the agreements can be viewed at any time and from any location. It is also possible to conclude a new lease agreement online: around the clock and completely digitally. Online Leasing applications are reviewed by Credit Suisse quickly and efficiently. This reduces the administrative effort on both sides, leads to cost savings, and allows the bank to make a quick credit decision if the company has good creditworthiness.
«Online Leasing is a clear USP for Credit Suisse»
For SMEs, leasing is suitable as an additional, medium-term source of financing. In the interview, Michael Rentsch, Head of Corporate Leasing Switzerland, explains when leasing should be considered and what the advantages are of Credit Suisse's Online Leasing.
What companies is leasing suitable for?
Michael Rentsch: Basically, lease financing is suitable for all companies that procure capital goods, for example vehicles, machinery, or IT equipment.
When is leasing more appropriate than a loan?
The primary consideration here is the "pay as you earn" effect. With leasing, the lease payments are made directly out of the current earnings from the leased asset. For real estate, I would recommend mortgage-backed loans.
Many companies are relying on loans because of the coronavirus lockdown. Could leasing be a solution for this?
The coronavirus pandemic provides further evidence of the existential role that liquidity plays in economically difficult and uncertain times. In this regard, lease financing may be an important complement to loan financing and create additional liquidity. In this way, other loans can be used to safeguard operations and ensure liquidity. It is also possible to sell capital goods to the bank that have not yet been leased and to use them under a leasing agreement.
How important is leasing in optimizing the financing mix?
Leasing increases a client's credit capacity because the leased asset acts as collateral. Leasing can be regarded as an additional, medium-term source of finance that is used to complement other financing.
Initially, many entrepreneurs were skeptical about leasing. Have these preconceptions disappeared?
In the past, leasing was seen as rather expensive. These days, leasing costs are more competitive and are based mainly on the leased asset that is being financed and the creditworthiness of the client. New tools such as Online Leasing reduce the administrative workload and streamline processing.
Nonetheless, leasing is still regarded as rather complicated. What is your experience in this regard?
Our clients' basic expertise is very good. But we have seen that processing demands a lot of very specific knowledge, for example in relation to VAT questions or ownership. Good advice is important in this regard. All our specialists have many years of experience and can give clients expert advice, provide them with targeted support, and lessen the burden on them.
What are the advantages of Credit Suisse's Online Leasing?
Efficiency, speed, and convenience. There is no tiresome handling of paper, as documents can be exchanged quickly and electronically, and signed digitally. This can be crucial for urgent transactions. The dashboard function provides an overview of all leasing transactions. This can all be done via the normal login in the online banking application. In this way, we can offer our clients an innovative solution that can be used easily and quickly. This is a clear USP for Credit Suisse in Switzerland.