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Corporate leasing – does leasing suit your company?

Leasing refers to long-term rental of movable fixed assets, such as a vehicle or office furniture. Corporate leasing is the right fit for your company if you are planning to acquire assets or machinery that will lose their value quickly and your company does not want to tie up assets in owning them.

Your benefits

Leasing means long-term rental of movable fixed assets, such as ICT and office equipment, furniture, plant and equipment as well as vehicles.

  • The financed asset serves as security
  • No capital tied to owning - your company only pays for the use of equipment
  • Enables up-to-date equipment portfolio management
  • Easier to budget and plan financing
  • Off-balance liability (NB. Groups applying IFRS follow the IFRS principles regarding corporate leasing.)

Forms and features of corporate leasing

With leasing, you do not need to reserve assets for security because the financed item will serve as primary security. After the lease period, you will have the option to extend the agreement at a low cost. With ICT equipment, you will also have a purchase option.

  • The financed amount is the purchase price excluding tax.
  • The monthly lease depends on a larger first instalment, if any, and the residual values that vary by equipment group.
  • The maximum lease period is 5 years.
  • The leases are debited by using the annuity principle in advance at the interval of one month or three months.
  • The leased asset must be delivered acceptably before payment to the vendor.
  • The asset must be insured.

Which one suits your company better: service or financial leasing?

The fundamental differences between service and financial leasing concern the residual value and service liability of the leased vehicle or equipment. In financial leasing, both are on the company’s liability, whereas in service leasing the agreement covers both servicing and the residual value within the framework of the agreement terms and conditions. 

See the leasing products below and find the one that is most suited to your company. 

Service leasing

Service leasing

Service leasing means long-term rental of vehicles and heavy-duty machinery in which your company only pays for the use of a vehicle. In a service leasing arrangement, servicing is included in the lease on the vehicle, contrary to what is the case with financial leasing. 

In service leasing, the parties agree on the lease period as well as the mileage; for example, 36 months/60,000 km. Service leasing is suitable for a wide range of vehicles, from passenger cars and vans to a large fleet of cars. The vehicles must be new. 

Your benefits
  • Easy and comprehensive solution for car finance
  • Your capital will not be tied up in cars; instead, your company will only pay for their use
  • No risk of value depreciation.
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