Rising Risk Costs in Leasing

The effects of Covid-19 on the economy are becoming more and more concrete.

For example, there has been a marked increase in the risk costs of leasing companies across Europe.

For the time being, the investment of (new) assets through leasing still seems to be at a very acceptable level, but this information pre-dates the latest developments of a Europe-wide flare-up of the Corona virus.

The increase in risk costs in itself has an almost direct effect on the availability of finance for SMEs, which would now be helped by sufficient available financial resources.

Linking the financing to the object, leasing in the general sense, is an ideal solution, having a concrete object coverage for the financier, to keep an optimal grip on the object and its actual  value, while the entrepreneur can work efficiently with (new) leased assets without a large outgoing cash flow.

For the latest figures on rising risk costs in leasing, see the enclosed article in English.



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