Lease your IT equipment, optimise your balance sheet, improve your credit rating.
Now that the new Basel II standards are in force, many banks are looking much more closely at their clients' capital adequacy. Consequently they are often very reluctant to grant loans. This means that many companies have to find alternative forms of finance. The solution: IT leasing from CHG-MERIDIAN.
Basel II standards
Basel II constitutes a change in the criteria applied to capital adequacy and banks' lending policies and is intended to improve the stability of the international financial system. The basic idea behind Basel II is that lending and, in particular, its pricing should reflect the individual risk attaching to a company much more closely than in the past. The greater the risk, the more expensive the loan. The ratings awarded by banks or external credit rating agencies are essentially based on financial ratios such as a company's equity ratio or its level of gearing.
Strategies for improving your Basel II rating
You can improve your credit rating by choosing the right financing strategy. IT leasing can play a key role here because leased IT equipment is reported on the balance sheet of the lessor rather than the lessee. This improves your company's equity ratio and credit rating and, consequently, you benefit from lower borrowing costs. This enables you to cut your costs and increase the scope for developing your company.