Guide: Leasing for businesses - A flexible solution for financing?

What is leasing for businesses?

Leasing is a popular form of financing for businesses that want access to modern equipment, vehicles or machinery without having to make large investments. Instead of buying the asset, the company leases it from a supplier, providing flexibility and the opportunity to focus on other areas of the business.

Although Qred Bank doesn't offer leasing, this guide can help you understand how business leasing services work and what benefits it can bring to your business. However, a business loan can often be more cost-free than a leasing solution. Especially a business loan from Qred, which you can repay early at any time - at no extra cost!

Business leasing is an agreement whereby the company pays a monthly sum to use an asset over an agreed period. This can be anything from cars and machinery to IT equipment or office furniture. Instead of buying the asset, the company pays for its use, and when the leasing period is over, the company can choose to renew the agreement, buy out the asset or return it.

Benefits of leasing for business

Leasing has many benefits for businesses, especially small and medium-sized enterprises that want flexibility in their finances:

• Flexibility
  Your business can upgrade or replace equipment without having to worry about large one-off costs.
• Lower costs in the short term
  Instead of paying the full cost of an asset in one go, costs are spread over time.
• Tax benefits
  In some cases, leasing costs may be tax deductible, which provides financial benefits.
• Better liquidity
  The capital can be used in other areas of the business, such as marketing or payroll.

Leasing vs business loans - What's the difference?

When it comes to financing assets, the choice is often between leasing and loans for businesses. Leasing gives you access to the asset without owning it, while borrowing involves borrowing money to buy the asset. The choice between leasing or business loans depends on the needs of your business:

• Leasing
  Suitable for assets that quickly lose value, such as IT equipment or cars. Perfect if you want to upgrade regularly.
• Loan
  Suitable for assets that have a long lifespan and that the company wants to own, such as real estate or specialized machinery.

How to choose the right leasing solution for your business?

Before choosing leasing, you should consider the needs of your business. A business leasing calculator can be useful for calculating costs and comparing different options. Be sure to research which suppliers offer the best terms and consider whether leasing will bring long-term benefits to your business.

Frequently asked questions about leasing for businesses

What are the benefits of business leasing?
Business leasing offers flexibility, lower one-off costs and the opportunity to upgrade equipment regularly. It can also provide tax benefits for some businesses.

When should you choose leasing over borrowing?
Leasing is suitable when your business needs assets that need to be upgraded quickly, such as IT equipment or vehicles. Borrowing is better if you want to own the asset in the long term.

How do leasing solutions work for businesses?
Your business pays a monthly fee to use an asset for an agreed period. At the end of the period, the business can renew the agreement, buy out the asset or return it.

Does Qred Bank have leasing products?
No, Qred does not offer leasing, but we specialize in business loans. This guide is meant to help you understand leasing as a financing option.

Can I use a business leasing calculator?
Yes, there are many online calculators that can help you calculate the cost of leasing and compare different options. This can be useful for finding the right solution for your business.