SAP financing compared: purchase, loan, leasing, hire purchase and rental
There are five ways to get SAP Business One. This overview shows who owns the licenses, how the payments affect the balance sheet and taxes, and what that means for your liquidity.
As of: 6 November 2026
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The short answer
The financing models for SAP Business One differ mainly in who owns the licenses. With a purchase, a loan or hire purchase, you capitalize the software and depreciate it yourself; with leasing and rental, you pay for use and book the installments as expenses. A purchase from your own funds is the cheapest in total, while the other models protect your liquidity.
The five models in one table
| Feature | Purchase (own funds) | Purchase with loan | Leasing | Hire purchase | Rental (cloud) |
|---|---|---|---|---|---|
| Ownership during the term | You | You | Lessor | legally the financier, beneficially you | Provider; you receive a right of use |
| At the end | You remain the owner | You remain the owner | return, extension or purchase depending on the contract | ownership passes to you with the last installment | use ends with the contract |
| Balance sheet (HGB) | capitalized | capitalized, plus liability | not on your books if the contract follows the German leasing decrees | capitalized, plus liability | not on your books |
| Tax | depreciation | depreciation, interest as expense | installments as operating expense | depreciation, interest portion as expense | fees as operating expense |
| VAT | with the invoice | with the invoice | with each installment | on the total amount at the start | with each invoice |
| Liquidity | large outflow at the start | spread, uses credit line | spread | spread | ongoing, per user |
| Total cost | lowest | plus interest | plus interest and margin | plus interest and margin | ongoing, payments never end |
The models in brief
Purchase from your own funds
You pay for licenses and implementation directly. This is the cheapest option but ties up capital at the start of the project. For tax purposes in Germany, you may apply a useful life of one year to software, explicitly including ERP software (German Federal Ministry of Finance letter of 22 February 2022). Different useful lives apply in the commercial balance sheet.
Purchase with a loan
Like a purchase, except that your bank pre-finances the purchase price. The loan uses your credit line with your house bank.
Leasing
A lessor acquires the licenses and you use them for fixed installments. Read more on the page SAP leasing.
Hire purchase
You pay in installments but are the beneficial owner from the start and depreciate the software yourself. Read more on the page SAP hire purchase.
Rental as a cloud subscription
You do not buy licenses but pay a monthly fee per user; the provider runs the system. Read more on the page Rent SAP Business One.
Other financing models
Compare this model with the other ways to pay for SAP Business One.
- LeasingUse it for fixed installments without tying up capital. What to agree on term and lease end.Read more about Leasing
- Hire purchasePay in installments, depreciate from day one and own the software after the last payment.Read more about Hire purchase
- Rental (cloud)SAP Business One as a cloud subscription from €38 per user and month, formerly known as ASP.Read more about Rental (cloud)
- Summary and checklistThe key points at a glance and ten questions to settle before you sign.Read more about Summary and checklist
Frequently asked questions
Which financing option is cheapest for SAP Business One?
In total, a purchase from your own funds, because there is no interest or margin. Leasing, hire purchase and loans cost more but spread spending over the years of use and protect your liquidity.
With which model does the software stay off my balance sheet?
Under German GAAP (HGB), with leasing that follows the German leasing decrees and with rental. With a purchase, a loan or hire purchase, you capitalize the software. Companies reporting under IFRS generally recognize leased assets as a right of use as well (IFRS 16).
When is VAT due with hire purchase?
Under German VAT law, hire purchase counts as a delivery. VAT on the full purchase price is therefore due at the start; companies entitled to deduct input tax can claim it as input tax accordingly early.
How quickly can I depreciate purchased software?
According to the German Federal Ministry of Finance letter of 22 February 2022, you may apply a useful life of one year to computer hardware and software, explicitly including ERP software. This applies to purchase, loan and hire purchase, not to leasing or rental.
Editorial team: init consulting AG, SAP Business One Gold Partner headquartered in Kösching near Ingolstadt, Germany, founded in 1999. Last reviewed on 6 November 2026. This page does not replace tax or legal advice.
