Germany is the second largest leasing market in Europe and the fourth largest in the world. The development of financial leasing industry is very mature. In Germany, about one quarter of equipment investment is realized through financial leasing, which accounts for more than half of all external financing methods. With the growing financing needs of small and medium-sized enterprises, financial leasing has become an indispensable part of daily business activities in Germany.
The market survey and research of the German Leasing Association in the past 30 years show that the three major developments of the German leasing industry are: the cost structure of financial leasing is clear and transparent, the liquidity of funds can be guaranteed, and the bank credit line can be continuously improved. These three characteristics have a great influence on the financing decisions of enterprises (especially small and medium-sized enterprises). In addition, the characteristics of financial leasing, such as facilitating equipment upgrading, reducing initial investment budget, and enjoying tax incentives, are also important factors to promote the development of German leasing industry.
In 2020, new changes took place in the market survey results of the German leasing industry. The lessee's concerns and demands gradually return to the most essential attribute of financial leasing business, that is, "return the leased property after the lease expires", which is also the first time in the past 30 years that this feature has become the primary basis for enterprises to make financial leasing decisions. In addition, the advantages of clear and transparent cost structure, ensuring liquidity of funds, facilitating equipment upgrading, and continuously improving bank credit lines are still the main development drivers of the German leasing industry.
