Platform
Accounts Payable
Automate your accounts payable workflow - from ERP to your supplier’s bank account.
Global Receivables
Open unique receivable accounts worldwide to collect payments like a local, save on fees, and control currency conversions on your terms.
Currency Conversions
Enjoy consistent rates with 24/7 control.
Treasury Management
Unified financial operations management across borders and entities.
Corporate Cards
Cards tied to your global accounts - spend globally, earn cashback, and eliminate currency conversion fees.
Integrations
Pull and push transaction data with a single click.
Solutions
Tech
See how Finofo solves the pain points of Tech & SaaS companies.
Food & Agriculture
Leverage Finofo’s platform to grow your Agribusiness globally.
E-commerce
Swipe right on better Global Banking
Automobile Industry
Drive growth with smoother, faster international transactions.
Manufacturing
Finofo makes your financial workflows as advanced as your production line.
Retail & Wholesale
Finofo helps you expand beyond borders with ease.
Pricing
Pricing
All the features without any paywalls
Company
About Us
Empowering business finance teams with technology to surpass traditional barriers.
Submit Pitch Deck
Finofo’s “Pay it Forward” program
Resources
Blog
Learn more about Finofo, Technology, Payments, and Banking.
Case Studies
See Finofo in action with our customers’ stories.
Changelog
Product news and updates.
Powerful tools to save you time and money.
Help Center
Product guides, best practices, and FAQs.
Comparison
Using a Bank?
Here’s what your Finance team endures — experience their pain.
Working with an FX Broker?
Are they really looking out for your best interests? Understand the trade-offs.
Using other Fintechs?
Are they truly solving your needs? Compare and see the difference.
Log InBook DemoSign Up
Glossary

Leasehold Improvements (LHI)

Leasehold Improvements (LHI) are enhancements or modifications made to a leased property by the tenant, typically to customize the space to their specific needs, with the costs often amortized over the lease term.

Understanding leasehold improvements

Leasehold improvements refer to alterations made by a tenant to a property, becoming the landlord's asset after the lease ends. These modifications may qualify for tax deductions.

Purpose of enhancing leased properties

The purpose of leasehold improvements is to adapt a leased space for the tenant's business, often focusing on interior upgrades like fixtures, equipment, and furniture. Tenants generally cover these costs, sometimes integrated into their rent payments.

Calculating the value of leasehold improvements

To assess the value of leasehold improvements, you'd compute their depreciation using the straight-line method, considering the improvement's cost, installation date, and expected useful life.

Documentation of leasehold enhancements

Documenting these improvements involves creating a detailed list outlining the alterations and their corresponding expenses. This documentation aids in calculating depreciation expenses for financial models.

Advantages and disadvantages of leasehold improvements

Advantages:

  1. Enhancing property value
  2. Making the space more appealing to potential tenants
  3. Improving the property's functionality for the tenant's business
  4. Potentially extending a tenant's stay, increasing rental revenue for landlords

Disadvantages:

  1. Higher costs compared to alternative financing methods
  2. More challenging to obtain
  3. Entails higher risk than other financing options