Business Leasing

Business leasing is the commercial counterpart to private leasing.

Unlike private leasing, where an agreement is made between an individual and a leasing company or bank, business leasing involves a contract between a leasing entity and a legal entity, such as a company. This option is often used by small and medium-sized enterprises (SMEs) that require a vehicle for their business operations.

The advantages of a business lease include:

• Valuable capital is not bound into a vehicle and can be used to fund other investments within the company.
• The leasing rates can be deducted from the company’s taxes.
• Commercially leased vehicles can also be used privately. In this case, however, the private usage must be declared in the tax statement in order to align with tax regulations.
• SMEs and self-employed individuals who need professional mobility benefit from the same flexibility as in private leasing.
• The possibility of periodically upgrading to newer models or more premium vehicles may add an image of being up-to-date to the company’s presence.

Synonyms: Company Leasing, Corporate Leasing, Commercial Leasing