Equipment leasing: what are the tax advantages for Swiss companies?
Optimise your tax position while preserving your cash flow
Equipment leasing is becoming increasingly popular with Swiss SMEs. And with good reason: this financing solution does more than just preserve your cash flow. It also offers significant tax advantages that are often overlooked.
If you want to invest in new equipment without burdening your balance sheet, leasing is an attractive alternative to bank loans or cash purchases.
1. Preserve your liquidity and equity
The first advantage of leasing is obvious: you can acquire new equipment without touching your cash flow. Unlike a direct purchase, which ties up a large sum of money, leasing takes the form of monthly payments, allowing you to conserve your cash.
In practical terms, this means :
- You do not release any capital at the outset.
- You keep your cash for other strategic needs.
- You avoid adding to your debt.
2. Tax-deductible monthly payments
Leasing payments are treated as operating expenses. This means that they are fully deductible from your taxable income. A real lever for tax optimisation!
To sum up:
- Each monthly payment directly reduces your taxable profit.
- Unlike a traditional purchase (which requires amortisation over several years), leasing gives you an immediate deduction.
- You optimise your tax position while preserving your resources.
3. A leaner balance sheet and a better capital ratio
Another advantage of leasing is that the equipment financed does not appear on your company's balance sheet. It remains the property of the leasing company until the end of the contract.
The benefits for your balance sheet :
- Your assets are lighter.
- Your capital ratios are improving.
- Your borrowing capacity remains intact, which is a real plus for your future financing.
4. Easier budget planning
With leasing, your payments are fixed and planned in advance. There are no nasty surprises: you know exactly how much your equipment costs, month after month.
Tangible benefits :
- Regular, controlled payments.
- Better visibility of your annual budget.
- Simplified equipment renewal at the end of the contract.
Leasing or bank credit: what should you choose?
If you are hesitating between leasing and a traditional bank loan, here is a quick comparison:
| Criteria | Leasing | Bank credit |
|---|---|---|
| Cash position preserved | ✅ Yes | ❌ No |
| Immediate tax deductibility | ✅ Yes | ❌ No (depreciation) |
| Appearance on the balance sheet | ❌ No | ✅ Yes |
| Flexibility | ✅ High | ❌ Low |
In a nutshell: why choose leasing?
Leasing is particularly recommended if you want to :
- Optimise your tax position.
- Preserve your liquidity.
- Reduce your balance sheet.
- Plan your costs accurately.
Would you like to find out more?
Our Ecofina experts are on hand to advise you and offer you a tailor-made solution.
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