Leasing Vertical Storage systems?

When buying vertical storage systems such as vertical storage lifts or vertical carousel, more often than not, you will have the possibility to finance the purchase using leasing. But why lease you might wonder, and how does it work?

The vertical lift or carousel as security

Leasing of vertical storage systems is possible because there are selected finance companies that understand the value of industrial machinery; and accept them as a security.

What the finance company do is to step in as a lessor between the supplier of the vertical storage system (eg. Relevator), and you as a buyer – creating the possibility to purchase the equipment with a monthly cost for as long as you use it. By leasing the equipment you will have a low and fixed monthly cost, rather than a large upfront payment. The finance company in turn will make a small margin through interest on the leasing contract.

Why lease?

The reason why a company chooses to purchase assets using leasing can vary widely from company to company, however, listed below are our top three reasons for leasing that might support you when buying a vertical storage lift or carousel.

Smoother cash flow

As mentioned above, leasing provides the opportunity to have a fixed monthly cost throughout the usage of the vertical storage system rather than having to pay a large upfront cost. Naturally, the impact on the cash flow will be a lot smoother when choosing to lease an asset; provided you will use it over a long period of time, it is also natural to pay for the asset over time. A leasing contract for vertical storage lifts or vertical carousels usually stretches over 36 – 60 months, by the end of the lease, the ownership of the equipment can be transferred to the lessee by paying the residual value (usually around 10-20%). See below for a chart illustrating the cash flow impact of leasing vs buying.

Example cash flow of a 45 000 € investment

Easy to budget and administrate

By leasing your purchase of vertical storage systems you will get a very clear picture of the costs throughout the usage of the equipment. The terms are fixed, and so is the monthly cost over the duration of the leasing contract.

No impact on the balance sheet

A leasing contract means that you don’t own the equipment under the contract, i.e. you don’t have to worry about depreciation. Likewise, the leasing cost is often 100% deductible on the working capital.

We will help you

Any questions?

If you have your eyes set on warehouse automation you have come to the right place. We have close partnership with finance companies and can concretize a leasing offer with terms and conditions. Contact us by using the form below – or just give us a call! To browse the vertical storage lifts and vertical carousels we have in stock, click here.

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