Leasing
You use the software and pay monthly instalments for it. What happens at the end of the term – such as a buyout or an extension – is set out in the lease.
Software in instalments instead of all at once
With leasing, hire purchase or a loan, you finance your custom software in monthly instalments – together with one of our financing partners.
LeasingHire purchaseLoanWith our financing partners
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Yes, custom software can be leased
Many people know leasing from vehicles and machinery. Custom software can be financed the same way: instead of paying for the project all at once, you pay monthly instalments. Your liquidity and your credit line with your bank stay free for other projects.
We work with financing partners for this. They offer three types of contract: leasing, hire purchase and loans. Which one fits best depends mainly on whether your company wants to own the software and depreciate it itself.
Leasing, hire purchase or loan?
All three spread the cost over monthly instalments. They differ in who owns the software and how it appears in your books.
Hire purchase
You pay in instalments, and with the last one the software becomes your property. You carry it on your balance sheet and depreciate it yourself.
Loan
You buy the software yourself from the start and finance the purchase price with a loan from one of our financing partners that you repay in instalments.
What can be financed
Besides the development itself, also planning, design, implementation, customisation and data migration up to operational readiness.
Preserve liquidity
Costs are spread over the term instead of falling due at once. Your credit line with your bank stays free for other projects.
What runs separately
Maintenance, support and hosting are ongoing services. You agree them directly with us as usual.
The three options compared
| Feature | Leasing | Hire purchase | Loan |
|---|---|---|---|
| Ownership | Stays with the lessor, you use the software | Passes to you automatically with the last instalment | Yours from the start |
| Balance sheet and depreciation | In principle with the lessor, your instalments are operating expenses* | With you: you capitalise and depreciate the software | With you: you capitalise and depreciate the software |
| VAT | Due with every instalment | Due on the total amount at the start, input tax deductible immediately | From our invoice, input tax deductible immediately |
| End of term | Buyout, extension or return – depending on the contract | The software is yours, nothing else to do | The loan is repaid |
| Advantages | Predictable instalments, no capital tied up, your bank's credit line stays free | Ownership at the end without a final payment, immediate input tax deduction, credit line stays free | Full control over the software from day one, a clear purchase |
| Disadvantages | No ownership during the term; for custom software, the balance sheet benefits often do not apply* | The software increases your balance sheet total; VAT is due right at the start | The software increases your balance sheet total; VAT and the purchase price fall due first |
| Fits if … | you want to preserve liquidity and not carry the software on your balance sheet | you want to own the software at the end and depreciate it yourself | you want to own the software right away and are looking for financing alongside your bank |
* Software developed specifically for your company is often attributed to you for tax purposes (special leasing) – in that case you carry it on your balance sheet even with leasing. This overview is not tax advice; your tax adviser will clarify how the options are treated in your case.
Our assessment by project volume
- Under €10,000: credit checks and contracts are hardly worth it – own funds are usually simpler.
- €10,000 to €25,000: worthwhile if you want to preserve liquidity.
- €25,000 to €250,000: the typical range for leasing, hire purchase and loans. But check development loans with repayment grants first – they are usually cheaper.
- Over €250,000: usually a development loan and your bank, with leasing as a supplement for individual parts.
This kind of financing usually costs somewhat more than a subsidised development loan. In return, you get predictable instalments and preserve the credit line with your bank. The financing partner will quote the specific terms after the credit check.
Check funding first, then leasing
Grant available? Then it takes priority. A grant of up to 50% is almost always worth more than any liquidity benefit. Some programmes, such as the Digitalbonus Bayern, explicitly exclude leasing and hire purchase – but not financing with a loan, because you buy the software yourself.
Development loan available? Development loans with repayment grants are usually cheaper than leasing. They generally require you to acquire the software yourself.
Leasing, hire purchase or a loan are the right choice when no funding programme fits, things need to move quickly or the credit line with your bank should stay free.
Four steps to instalment financing
1. Project and quote. We clarify scope and cost with you and prepare a quote.
2. Application with the financing partner. Based on our quote, it checks your credit and makes you a contract offer for leasing, hire purchase or a loan.
3. Implementation and sign-off. We develop your software. After sign-off, you confirm acceptance to the financing partner.
4. Pay instalments. The financing partner pays us, and you pay it the agreed monthly instalments.
Frequently asked questions
Who can lease software?
Companies, the self-employed and traders. The offer is not aimed at private individuals. A positive credit check is required.
Can custom-developed software be leased?
Yes. Our financing partners explicitly finance intangible assets and include planning, implementation and customisation costs.
Is software leasing off-balance-sheet?
That cannot be said across the board. Software developed specifically for your company is often attributed to you for tax purposes. Please clarify how leasing, hire purchase or a loan is treated in your case with your tax adviser.
Can I combine leasing, hire purchase or a loan with funding?
Leasing and hire purchase usually not for the same costs: development loans generally require you to acquire the software yourself, and some grants explicitly exclude leasing and hire purchase. With a loan, you buy the software yourself – which makes it more compatible with a grant; the Digitalbonus Bayern, for example, permits loan financing. The funding body confirms whether this applies to your programme. We are happy to discuss which route is the most favourable for your project.
Do warranty and support continue as usual?
Yes. We remain your contact for questions about the software, maintenance and support, and warranty claims are usually addressed directly to us. The financing partner only handles the financing.
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