Operations hire

iStock_000001095558SmallGood reasons to lease instead of owning

A more strategic approach to the use of capital gives more profitable operations and greater freedom of action in difficult times. Therefore, private and public companies tend to finance operating equipment on operational leases. Here are some of the typical reasons why:

  • Release capital
Operational leasing is an instrument to release capital. Leasing gives the option to purchase the necessary equipment, while capital is released to develop the company's strategic areas.
  • Positive effect on the balance sheet
Items financed through operational leasing does not burden the company's balance sheet. Operational leasing therefore gives a greater extent of capital than a loan or equity financing.
  • Better key performance indicators
Limited liability and joint-stock companies are measured by key performance indicators. Financing operational equipment with operational leasing instead of carrying them over to the balance sheet as loan-financed property will have a positive impact on a number of key performance indicators that are based on the extent of equity.
  • Greater credit lines
The collateral for an operational lease agreement is the item being leased and so it does not burden the company's credit lines. Existing credit lines are not burdened and the company's other credit basis remains untouched.
  • Better utilisation of resources
Depreciated assets are often considered "free" and the potential gains from a new purchase or an upgrade are "forgotten". Maintenance of an old item and lower staff utilisation can cost more than divesting the old object and financing a new one.
  • Better conditions
CMA Asset Management is a neutral financial partner with a substantial portfolio of leading Danish and international banks. Our position ensures market leading conditions for our clients.
  • Regular predictable costs
Costs for purchase, maintenance and upgrades are not necessarily in line with the company's revenue and can be difficult to predict and control. When the entire lifecycle of an item is financed by operational leasing, the budget work becomes much simpler.
  • Utilise the value of second-hand equipment
A lot of equipment has a second-hand value, provided that it is sold at the right time and in the right way. Experience of second-hand markets optimises the value while taking into account the environment.
  • A better overview
A management system is needed for operational leasing to keep an overview of the assets. Where they are, what condition they are in, cost allocation, service life, etc.