Financing construction equipment in Switzerland: leasing vs hire purchase | Ecofina
Financing construction machinery in Switzerland: leasing or finance lease?
In the construction sector, equipment often represents the majority of a company's value. A crane, an excavator or a compactor can be worth several hundred thousand francs. For Swiss construction and civil engineering SMEs, the question of financing this machinery is strategic: buying with equity ties up capital, borrowing weighs down the balance sheet, and failing to invest compromises the ability to bid for contracts. Leasing and hire purchase offer two complementary alternatives.
Financable plant types
Almost all professional construction machinery can be financed by leasing or hire purchase in Switzerland:
Groundworks & foundations: Hydraulic excavators (mini excavators, 20- to 50-tonne excavators), bulldozers, wheeled loaders, tamping foot compactors, drilling rigs and geotechnical drills.
Lifting & handling: Mobile cranes (25 to 200 tonnes), tower cranes, telescopic handlers, access platforms (articulated and scissor lifts), rough-terrain forklifts.
Site transport and logistics Construction dump trucks and lorries, concrete mixers and agitators, stationary and truck-mounted concrete pumps, articulated dump trucks.
Compaction & asphalt: Vibratory rollers, asphalt pavers, road planers.
Heavy tools: Industrial generator sets, high-capacity air compressors, hydraulic rock breakers.
The minimum amount for a financing application is generally CHF 30,000. Specialised machinery or recent second-hand equipment (less than 5 years old) are also eligible.
Leasing vs financial lease: what is the difference in Switzerland?
In Switzerland, the two terms are often used interchangeably, but they cover different contractual realities:
| Characteristic | Operating lease | Finance lease |
|---|---|---|
| Ownership during the contract | lessor (leasing company) | Landlord |
| Purchase option at the end of the contract | Residual value fixed in the contract | Option exercise price (often 1 %) |
| Registration on the balance sheet | Off-balance sheet (SWISS GAAP FER) | Can be included as an asset and a liability |
| Risk of obsolescence | Landlord | Borrower |
| Maintenance included available | Yes (full-service) | No (separate) |
| Ideal for | Frequent renewal, standardised machinery | Final acquisition desired, specific equipment |
For the majority of Swiss construction companies, the operational leasing is preferred for high-utilisation machinery with a limited lifespan, whereas the finance lease is preferred for highly specialised equipment that the company wishes to keep in the long term.
Benefits of leasing for Swiss construction companies
Preservation of working capital. A CHF 180,000 construction machine bought with equity ties up capital that is not working. Leasing turns this expense into a predictable, tax-deductible monthly outlay.
Always modern fleet = fewer breakdowns. In the construction industry, a breakdown on site costs on average CHF 2,000 to CHF 5,000 per day (team downtime, delay penalties, emergency hire). Renewing your fleet via leasing structurally eliminates this risk.
Flexibility depending on order books. Leasing can be tailored to the seasonality of the construction industry: certain contracts allow for deferred rental payments during quiet periods or adjustments to the term.
Full tax deductibility. Lease payments under an operating lease are operating expenses that are 100 % deductible from taxable profit — unlike depreciation on company-owned equipment, which is subject to cantonal and federal rules on straight-line or declining-balance depreciation.
Impact on tenders and submission capacity
In Switzerland, public procurement (governed by the Public Procurement Act, PPA) assesses the technical capacity of tenderers, notably on the basis of their available equipment fleet. A recent, well-maintained and documented fleet significantly strengthens tender submissions.
Furthermore, in private markets, having recent machinery that complies with emission standards (in particular Stage V engines, in force since 2019 in the EU and progressively applied on Swiss cross-border construction sites) is a direct commercial advantage.
Finally, a leaner balance sheet through leasing improves the financial ratios that clients and surety banks consult to assess the company's financial strength.
Case study: an earthmoving company from Vaud
Fictional case for illustrative purposes.
The situation: Earthmoving company in Morges (Vaud), 12 employees. Healthy order book, but an ageing mobile crane (12 years old, frequent breakdowns) is hampering the ability to tender for high-volume lifting projects. Purchasing a new CHF 180,000 mobile crane is impossible without burdening the balance sheet.
The Ecofina solution:
- 50-tonne mobile crane, new — value: CHF 180,000
- 60-month operating lease
- Monthly rent: CHF 3,150
- No deposit
- Purchase option at CHF 1,800 at the end of the contract
The results: Zero breakdowns over the first 18 months. Ability to tender for 2 additional projects per quarter (estimated additional revenue of CHF 320,000/year). Saving on emergency rental: approximately CHF 18,000/year. Balance sheet not weighted down. Rentals fully tax-deductible.
FAQ — Plant hire in Switzerland
Can you lease a second-hand construction machine?
Yes, subject to conditions. The secondhand machinery must generally be under 5 years old and in good working order. A valuation may be required. Recent machinery (under 3 years old) is the easiest to finance.
Is vehicle insurance included in the lease?
No, as a rule. The insurance (contractors' all risks, plant hire public liability) remains your responsibility. Some full-service contracts offer an optional insurance package.
What happens if the machine is involved in an accident or stolen during the contract?
The comprehensive insurance you take out covers the replacement or repair value. In the event of a total loss, the insurance payout is paid to the lessor, and the leasing contract is settled. Ecofina supports you in setting up the appropriate insurance package.
Can multiple machines be financed at the same time?
Yes. Ecofina can structure multi-asset financing solutions (fleet leasing) to finance 2 to 10 items of equipment simultaneously with a single application, often on more advantageous terms than single-asset financing.
For Swiss construction companies, plant and machinery leasing is not a fallback solution — it is a financial management tool that keeps them competitive, maintains a high-performing fleet and preserves their capacity to bid for major contracts.
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