Leasing refers the medium- to long-term rental of assets. In civil law, leasing agreements are primarily governed by rental law under sections 535 et seqq. German Civil Code (BGB).
Benefits of leasing include:
- Only 25% of the financing input from leasing instalments is allocated to pre-tax profits. The financing input is set at a blanket rate of 20% (only if the lessee pays trade tax).
- Leasing finance is balance-sheet neutral.
- The leased item is recorded on the balance sheet of NORD/LB Leasing and relieves the administrative burden (e.g. fixed asset accounting).
- Unlike purchasing, it has an extended impact on liquidity (pay as you earn).
- Leasing is especially suitable for to commercial and trades-based businesses in the SME sector and for the self-employed.
Two different types of leasing agreement are available:
Full amortisation agreement
Amortisation is the scheduled redemption of a debt. With full amortisation agreements, the procurement costs including the lessor’s financing costs are covered in full by the payments of the leasing instalments during the contractual term.
Part amortisation agreement
With part amortisation agreements, the procurement costs including the lessor’s financing costs are not covered in full by the payments of the leasing instalments during the contractual term. A residual value remains at the end of the contract.
Our asset portfolio focuses on the following areas:
- Cars, trucks, buses, trailers etc.
- Fabricating and processing machinery
- Facilities, medical devices and assets for the renewable energies field
- Office and commercial equipment
- Other assets
Would you like to lease an asset? Then drop us a line.
Your contact at our subsidiary >NORD/LB Leasing is listed at the top right of this page. NORD/LB Leasing’s business segment is the area of movable asset leasing.