Use Custom Software – Without Upfront Costs
Leasing or hire purchase: We develop your software and provide the right financing. Predictable payments, flexible terms, tax advantages.
Leasing or Hire Purchase – Which Suits You?
Both models enable predictable payments. The difference: With leasing, you stay flexible; with hire purchase, you become the owner.
Your Benefits
With our flexible financing models, you can use high-quality, custom software without straining your budget. Software leasing and hire purchase offer numerous advantages over traditional purchasing.
Monthly payments instead of a large lump sum preserve your liquidity and allow you to allocate your financial resources to other important investments. At the same time, you benefit from tax advantages, as leasing payments can be deducted as business expenses.
At the end of the term with hire purchase, you have the option to acquire the software at a pre-agreed residual value and use it permanently.
💰 What Does Your Software Project Cost?
Before deciding on leasing or hire purchase, you should know the project costs. Our interactive cost calculators give you an initial estimate – free and non-binding.
The demand for custom-developed software is rising, as off-the-shelf solutions often fail to meet the specific requirements of modern businesses.
However, custom software development involves significant investment. To manage these costs, many companies turn to flexible financing models such as software leasing and hire purchase.
Both approaches offer attractive options to facilitate access to custom software without excessively burdening the budget. In this guide, we take a look at how these models work specifically for custom software development.
What Makes Custom Software Special?
Custom software is specifically tailored to the needs of a business. It offers:
- Unique Functionality: Solutions precisely aligned with business processes.
- Competitive Advantages: Process optimization and clear differentiation from competitors.
- Scalability: Adaptability to business growth.
Software Leasing vs. Hire Purchase These advantages come at a cost, as custom software often requires an extensive development phase. This is where software leasing and hire purchase come in, making financing flexible and predictable.
Our Financing Models
Software Leasing
With software leasing, you rent the software for a fixed period and pay regular installments. This enables precise budget planning and preserves your liquidity.
- Flexible terms from 24 to 60 months
- Predictable, consistent monthly payments
- Tax advantages through full deductibility of lease payments
- Optional maintenance and support packages
- Option to extend or renegotiate at end of term
Hire Purchase
Hire purchase combines the benefits of leasing with the option to acquire the software at the end of the term at a pre-agreed residual value. This allows you to use the software long-term.
- Terms from 24 to 60 months
- Calculable monthly payments
- Software acquisition at agreed residual value
- Tax deductibility of payments during the term
- Full control over software after acquisition
Choosing the Right Financing Model
Choosing the right financing model depends on various factors. Consider your flexibility needs, upfront costs, long-term plans and whether you ultimately want to own the software.
How It Works
Consultation
We advise you on the various financing models and find the optimal solution for your requirements.
Concept
We develop a tailored concept for your software and create a customized financing proposal.
Development
We develop your software to the highest quality standards and keep you updated on progress.
Usage & Support
You use your software and benefit from our support while conveniently paying monthly installments.
Frequently Asked Questions
FAQ on Software Leasing & Hire Purchase
Leasing vs. Hire Purchase
When should I choose leasing and when hire purchase?
Leasing is suitable if you want to stay flexible and may want to replace or upgrade the software after a few years. Hire purchase is the better choice if you want to use the software long-term and become the owner at the end – especially for custom solutions that are built to last for years.
Can I switch from leasing to hire purchase during the term?
A direct switch is usually not provided for in the contract. However, you can often exercise a purchase option at the end of the lease term. If you are unsure, we recommend hire purchase from the start – this gives you the certainty of becoming the owner.
Which model is more affordable?
Monthly payments are often slightly lower with leasing since no ownership transfer is factored in. With hire purchase, you pay more in total but also acquire ownership. Which model is economically better depends on your usage duration and tax situation.
Contract Terms & Duration
What term lengths are available?
We offer flexible terms from 24 to 60 months. The optimal term depends on your project scope, budget and expected usage duration. For complex custom software projects, we typically recommend 36–48 months.
Can I terminate the contract early?
Early termination is generally possible but involves costs (early termination fee). In case of business changes, we work together to find a solution – such as contract adjustment or transfer.
Can I transfer the software to a successor or buyer?
In case of a company sale or merger, the contract can usually be transferred to the legal successor. This requires a credit check of the new contracting party and our consent.
Costs & Payments
What do the monthly payments consist of?
Payments include the financing portion for development costs plus applicable interest and fees. Upon request, maintenance and support can be included as a service component – giving you one transparent total payment.
Is a down payment required?
For standard leasing, usually not. For hire purchase, a down payment of 10–20% is typical but not mandatory. A higher down payment reduces the monthly burden and can facilitate approval with limited creditworthiness.
Are updates and support included in the payments?
Depending on the agreement, updates and support can be included in your contract. We offer various support packages that you can flexibly add – from basic support to SLA-backed premium packages.
Can I make extra payments?
Yes, extra payments are possible with hire purchase and shorten the remaining term or reduce the final payment. With leasing, extra payments are usually possible at the beginning (special lease payment) to lower the monthly rate.
Looking for a custom calculation? We create a tailored financing proposal for your project.
Request ProposalOwnership & End of Term
What happens after the lease term expires?
You have several options: 1) Extend the contract at reduced payments, 2) upgrade to a newer software version, 3) purchase the software at residual value (if agreed), or 4) end the contract. We advise you well before the term expires.
Who owns the software during the term?
With leasing, the software remains the property of the leasing company – you have a usage right. With hire purchase, ownership is transferred only at the end of the term after full payment.
What happens with the source code?
The source code is held in escrow by us. At the end of the contract (purchase or hire purchase transfer), you receive full access. Upon request, we also set up an escrow agreement that protects you in case of developer insolvency.
Can I continue using the software after the contract ends?
With hire purchase: Yes, after full payment, the software belongs to you without restrictions. With leasing: Only if you exercise the purchase option or extend the contract. Without extension, the usage right ends.
Requirements & Creditworthiness
What requirements must my company meet?
Leasing companies assess your creditworthiness based on annual financial statements (usually 2–3 years), current management accounts and a self-disclosure form. For younger companies, additional collateral or a higher down payment may be required.
Who is software leasing particularly suited for?
Software leasing is suitable for companies that want to preserve liquidity, leverage tax advantages or regularly need up-to-date software. It is ideal for mid-sized companies, startups (from 1–2 fiscal years) and organizations with limited IT budgets.
From what project volume does financing make sense?
As a rule, financing is worthwhile from €10,000–15,000 project volume. For smaller amounts, financing costs and overhead often exceed the benefit. Alternatively, we offer flexible installment payments directly for smaller projects.
Tip: Use our interactive cost calculators for an initial estimate of your project budget.
Unsure whether leasing or hire purchase? In a free initial consultation, we find the right model for you together.
Schedule Leasing ConsultationInterested?
We are happy to advise you personally on our leasing and hire purchase options. Contact us for a no-obligation initial consultation or schedule an appointment directly.
Up to 50% Grant – In Addition to Leasing & Hire Purchase
Combine government funding with leasing: Secure the grant first and finance the remaining amount via leasing or hire purchase. This significantly reduces your monthly payment. Check your funding options with our calculator.