We'd love to hear from you! If you have any questions or are looking for advice on how to best facilitate an international finance solution, feel free to contact us.
Getting an overview is difficult. You will find many pay-as-you-x models and proprietary leasing and rental options on the websites of manufacturers, system houses, and outsourcers. Still, as is so often the case, the devil is in the detail. If you are faced with whether to lease or rent, I recommend that you talk to a partner who offers both and who specialises in the field. This is how you can get a comprehensive overview and find the right structure for your project.
The difference between leasing and renting is not as big as it is often made out to be, and there is little point in discussing which model is better without knowing more about the customer's project. Our customers want a fixed monthly rate that includes all services, a single point of contact, and as much flexibility as possible. I can meet all these requirements with a rental or a lease agreement. From a legal standpoint, the only difference is that with leasing, the warranty passes directly to the lessee. Rental agreements can often be processed more quickly, as they cover pre-defined service packages. With leasing, the customer selects each service separately and decides whether to perform these services themselves or outsource them to an external partner. In this case, the flexibility is much higher.
At the international level, finding the right financing model is more difficult. The terms' rent' and 'lease' themselves have entirely different meanings in different European countries. It is also worth noting that the rental model requires the provider to have a presence in the country concerned. This is not the case with leasing, and that makes international solutions more straightforward. In an international context, I would always recommend leasing, as it is much more flexible in terms of financing options and the level of service available in the respective countries.
It depends. First of all, I should point out that pay-per-use is available for both rental and leasing agreements. But as the name suggests, the benefit of this option is that I only pay based on my usage. A common misconception is that you only pay if you actually use the service or product over the term of the contract, but all reputable providers stipulate a certain minimum purchase over the term; of course, otherwise, the financial risk would be too high. Pay-per-use is particularly suited to customers with a very seasonal business or who – for organisational reasons – require a high level of cost transparency and clear cost allocation.
I believe both leasing and rental will play their part in the future. They are by no means mutually exclusive; it all depends on the customer's project requirements. I consider leasing to be the better option at the international level, as this model can be structured with much greater flexibility. Leasing is also more cost-effective over the long term, while renting is a good alternative for customers who need a quick, ready-made process and do not require a custom solution.
We'd love to hear from you! If you have any questions or are looking for advice on how to best facilitate an international finance solution, feel free to contact us.