Equipment leasing with no down payment

Many businesses need new equipment but do not want to tie up a large sum of money in a one-off payment. The good news is that it is often possible to lease equipment with no down payment at all. That way the business can get access to the equipment it needs without putting unnecessary strain on liquidity.

But what does leasing with no down payment actually mean, what does it cost, and what does it take to get approved?

Here is an overview of the options.

What does leasing with no down payment mean?

"No down payment" first and foremost means DKK 0 as a first payment, which lets the business get started quickly without a large initial investment. This makes leasing an attractive solution for businesses that want to preserve liquidity for other business purposes.

• No first payment. The agreement can be started without a large one-off payment and with a focus on the ongoing lease payments.
• Residual value. Financing structured through leasing requires a residual value. The residual value is most often 10%, but can be adjusted.

Leasing with no down payment lets businesses invest in the equipment they need with minimal capital tied up from the start. That is why it is important to look at the overall agreement and choose the solution that creates the greatest value and flexibility for the business.

Which equipment can be leased with no down payment?

Most types of business equipment can in practice be leased with no down payment, provided the business is credit-approved. Common categories:

• IT equipment. Computers, servers, network equipment and printers/copiers.
• Warehouse equipment. Trucks, conveyors and other equipment for warehousing and logistics.
• Production equipment. Machines for industry and production, including special-purpose equipment.
• Construction and agricultural machinery. Equipment with a long lifetime, where a large one-off expense would otherwise tie up capital.
• Clinic and wellness equipment. Treatment and training equipment for clinics, fitness centres and company fitness facilities.
• Office fixtures and furniture. Fit-out when setting up new premises or moving.

Whatever the type of equipment, the same mechanism decides whether DKK 0 down payment is an option: the equipment's expected residual value, the business's credit assessment and the chosen term.

What does leasing with no down payment cost?

The price depends on several factors, not just the monthly payment:

• The equipment's price, age and resale value. Equipment with a good resale value is easier to finance with no down payment.
• Lease period. A longer term often gives a lower monthly payment, but a higher total cost.
• First payment versus DKK 0 down payment. With no down payment a larger amount is financed over the whole period, which typically gives a higher monthly payment or a higher total financing cost.
• Interest and fees. The lessor's price for making the capital available, plus any administration costs.
• Your business. The credit assessment affects which options and terms you get.

Can start-ups lease with no down payment?

Yes, it can often be done. Providers typically assess:

• The business's finances and accounts (where start-ups often have a limited track record)
• Industry and ownership
• The equipment's value and resale potential
• The desired lease structure and term

Why use Leasing Helper?

It can be hard to see which leasing offer is actually the best. A low monthly payment is not necessarily the same as the best deal. This is where Leasing Helper helps you.

We compare offers across price, terms and total costs – so you can make a decision on an informed basis.

Among other things, we look at:

• The total price over the whole lease period, not just the monthly payment.
• Down payment and fees.
• Residual value and terms at expiry, so you know what the agreement really involves
• Credit requirements and any guarantee.

You fill in the form. We do the rest. We find the differences, compare the terms and help you find the leasing solution that makes the most sense for your business.

You receive the best and cheapest solution for your business.