no limits: vehicles, real estate, but also machines, can be financed by installment plan. – © photosoup- stock.Adobe.Com
- Corporate finance needs long-term planning
Installment plan? The term itself often causes confusion. Which to choose: rent or buy? If at all, he is known from the private real estate sector. In the commercial context, the volume of hire-purchase transactions is growing steadily; according to the ifo institute, it even rose by 10.4 percent to an impressive 8.5 billion euros in 2017. However, many companies, especially small and medium-sized ones, are not aware of this topic.
Interest is correspondingly low. The chamber of handicrafts for munich and upper bavaria can also only state on request that Installment plan as a financing option in business consulting "no role at all" plays. randolf steinhoff of cologne-based abcfinance gmbh emphasizes that lease-purchase can be an alternative. As head of department, Steinhoff is responsible for direct leasing, but in certain cases he also advises his customers to use installment plan. We have summarized when this is and what interested parties should basically look out for in ten questions and answers.