What is lease financing?

Leasing means long-term rental of movable fixed assets. It is suitable for companies that do not want to tie up assets in ownership.

Lease financing has three parties: the vendor of the machinery or equipment, Nordea Finance as the lessor, and your company as the lessee. In simple terms, we buy the equipment from the vendor and rent it to your company for a predetermined monthly lease payment. 

There are also alternatives to leasing – your company can take out a loan to pay for the machinery or equipment or enter into a hire-purchase agreement with the company that sells the equipment. If these options do not feel suitable for you, we recommend you to consider lease financing. 

Our customers most often use lease financing to purchase IT and office equipment, machinery and other equipment. 

Lease financing spreads the lease expenditure over the service life of the machinery or equipment, so you do not need a large amount of capital. The purchased asset secures the financing.

Leasing benefits in a nutshell

  • The financed asset serves as collateral. 
  • Capital is not tied up in purchases – you only pay for usage.
  • Having pre-agreed lease payments makes planning and budgeting easier.
  • Cost efficiency and flexible cash management
  • Flexible solutions at the end of the lease term
  • Free up working capital.
  • Spread the costs over the service life of the equipment.

  • Deduct the lease payments from your taxes.