Get a new machine – quickly and easily. Online Leasing makes it possible
Use it without buying it. Leasing gives SMEs a chance to stay on the cutting edge of technology. How equipment leasing works and why even companies with good liquidity choose to lease.
What SMEs can finance by leasing
The concept of vehicle leasing is well known. But leasing can also be used to finance capital goods, such as construction machinery, cranes, PistenBullys, and mountain railways. Leasing is becoming more widespread in the healthcare industry. Doctors, hospitals, and retirement homes lease expensive devices such as computer tomography scanners, dental chairs, and even entire practice facilities.
Using leasing to finance is perfect for you if you want to protect your company's liquidity and improve your return on equity – all while relieving your balance sheet. Leasing also comes into play if you want to expand your core business and remain at the cutting edge of technology, but you don't have sufficient financial resources to do so. On condition that your company has a good credit rating.
How equipment leasing works
Leasing for SMEs is similar to leasing a private car. The bank buys capital goods or vehicles and leases them out to corporate clients. While the bank owns the goods, SMEs keep them in their possession for as long as the lease agreement is valid. SMEs pay the bank lease payments for the duration of the agreement in exchange for using the vehicle or capital good. There is also the option to purchase the lease asset after the lease term ends.
Leasing is ideal for SMEs to bridge a temporary scarcity of resources or to use as a long-term financing option. With leasing, cash and other liquid assets remain in the company and are available to pay wages, rents, and other expenses. Silvio Mariani, Senior Leasing Specialist at Credit Suisse, refers to this concept as "pay as you earn": "Lease payments are made from monthly profits." And it is possible to plan the monthly costs with a high level of precision. Equipment leasing allows SMEs to respond to new market situations quickly and flexibly and to always stay up to date with the latest technology. These are key factors that increase a company's competitiveness.
SMEs' experience with leasing
Blumen-Lehmann AG's experience of leasing is positive. The company produces wooden structures in a range of sizes. It took advantage of leasing from Credit Suisse to finance the new CNC machine it urgently needed and a new production hall – an extensive investment that paid off.
Bardusch AG, which specializes in cleaning workwear, also relies on a lease agreement with Credit Suisse. Leasing allows it to keep its fleet of trucks up to date and to respond flexibly to its needs. Thanks to Online Leasing, the company receives approval for a new truck within 24 hours.