What type of financing suits your company the best?
Different forms of financing have different benefits. The main differences between the forms of financing are shown below to give you an idea of which form of financing may be most suitable for your company’s purchases. Our vendor partners will be happy to help you get started with hire purchase or financial leasing. You can apply for an AssetMaster leasing limit if your company banks with Nordea.
| Hire purchase | Financial leasing | AssetMaster | |
| Ownership of the financed asset | When the financing is repaid, the machinery or equipment becomes your company’s property. | Nordea Finance | Nordea Finance |
| Possibility to enter the asset on the company’s balance sheet | Yes | No | No |
| Right to recognise depreciation | Yes | No | No |
| VAT deductible | Yes | Yes | Yes |
| Collateral required | Financed asset | Financed asset | Financed asset |
| Additional collateral | No | No | No |
| Monthly payment | Monthly instalments that suit your company | Fixed monthly lease payment | Pre-agreed monthly lease payment |
| Early termination of agreement | Yes | Yes | Yes |
| Redemption of the asset at the end of the agreement period | No | No | Possible if desired |
| Who insures the asset? | Your company | Your company | Your company |
| Typical agreement period | 12–60 months | 24–60 months | Varies |