smzh blue logo

Leasing for SMEs – The basics

Leasing is an attractive financing option for small and medium-sized enterprises (SMEs), enabling them to use capital goods such as machinery, vehicles, or IT infrastructure without having to tie up capital directly. The core concept is “leadership not ownership” or “pay as you earn” – in other words, the focus is on utilization rather than ownership.

Leasing für KMU - desktop

Types of leasing

  • Financial leasing: The leased asset is recorded on the balance sheet and treated as an installment purchase. Full amortization takes place over the contract term. This option is suitable for companies that intend to use or acquire the asset in the long term.
  • Operating leasing: The asset is not recorded on the balance sheet, but treated as a rental asset. The contract term is shorter than the asset's economic useful life. This provides advantages in terms of balance sheet structure and flexibility.

Direct vs. indirect leasing

  • Direct leasing: The producer or supplier is also the leasing provider. This is usually the case with standardized products such as vehicles or machinery.
  • Indirect leasing: In this case, the leasing company buys the asset from the supplier and concludes a leasing contract with the customer. This type of leasing typically involves three or four parties (customer, supplier, leasing company, bank).

Sale and leaseback

Here the company sells existing fixed assets (e.g., real estate) to a leasing company and leases them back. The goal is to free up tied capital while continuing to use the asset. A prerequisite is that the asset qualifies for leasing (for example, there is a secondary market).

Advantages of SME leasing

  • Maintain liquidity and equity ratio.
  • Balance sheet neutrality in case of operating leasing.
  • Tax advantages as the leasing rates are tax-deductible.
  • Possibility to always use modern and efficient technologies.
  • Flexible contract design and easy plannability thanks to fixed rates.

How to proceed – Step by step to your leasing solution

1

Analysis of your requirements

  • We analyze your detailed financing requirements and define the optimal framework conditions for your leasing asset.

2

Market comparison and assessment of offers

  • Comprehensive comparison of various leasing providers to identify the best terms and fitting offers.

3

Rough process and legal aspects

  • We support you in obtaining supplier quotations, balance sheets, and other required documents. The leasing company assesses the customer’s creditworthiness and evaluates the leased asset. The leasing contract defines ownership, contract duration, insurance obligations, as well as the location and condition of the asset. The lessee commits to using and maintaining the asset carefully and to disclosing their financial situation.

4

Negotiation of optimal conditions

  • Our experts negotiate with leading providers:

    • Attractive leasing rates
    • Favorable interest rate conditions
    • Flexible contract terms
5

Leasing rate and basis for calculation

  • The leasing rate is generally paid in advance and based on:

    • Acquisition value
    • Contract duration
    • Residual value
    • Refinancing costs
    • Rate model (linear, degressive, seasonal)
    • Risk assessment and asset value
6

Support to conclusion

  • Professional support during the contract assessment and in correctly implementing all agreed conditions.

smzh St. Gallen - desktop

smzh for you – Your advantages at a glance:

  • Access to financing partners: Broad network of leasing companies.
  • Customized solutions: Individual and needs-based leasing concepts.
  • Cost optimization: Reduced financing costs through attractive terms.
  • Time savings: Efficient processing with no need for independent negotiations.
  • Security: Clear, transparent contract terms for reliable planning.
  • Tailored payment models: Leasing rates can be structured as linear, degressive, or seasonal to match your income situation.

We handle questions such as those shown on the right on a daily basis. We look forward to supporting you.

Contact us

    Depending on the type of leasing, you can return the leased asset, extend the contract, or purchase it at residual value.

    Virtually all capital goods such as machinery, vehicles, IT systems, or medical devices.

    Yes, leasing rates are considered operating costs and can therefore be deducted from tax, easing your tax burden.

    This depends on your financial situation and the specific requirements of the leasing asset. Our experts look forward to advising you to find the optimal solution for your business.