Leasing and credit

Service Business

The choice between leasing and credit is a hard nut to crack for many entrepreneurs. Both methods have their advantages and disadvantages that make them the right option for certain situations. So what to choose? What will be the best for the development of the enterprise? We invite you to read.

Leasing - for whom?

This form is best for enterprises that intend to obtain goods that are intended for exploitation. The best example of such an item are cars - many companies in Poland lease them. It is important that you conduct a detailed simulation of your future expenses before making your decision. You may find it more profitable to buy the item you own, with or without a loan. Leasing is characterized by a relatively short financing period - usually from 2 to 5 years.

Entrepreneurs often choose leasing because it does not require many documents when completing formalities, and you do not need to have an extremely high creditworthiness. In addition, the required own contribution is usually not as large as in the case of a loan - it varies between 0 and 45%. The leased object formally does not belong to the lessee, so if it is destroyed or damaged, the insurance funds go entirely to the legal owner. If the policy does not cover all costs, you have to pay extra from your own pocket. The theft of a leased facility often does not mean that there is no need to pay back installments.

Who should take the loan?

Taking out a loan from a financial institution is recommended to enterprises that intend to purchase real estate. Loans are a very popular form of obtaining funds among Polish companies. Its universality is evidenced by the fact that many banks have a separate loan offer for business activities. Loans are divided into two main types: working capital and investment loans. In the context of the comparison with leasing, we are interested in the latter type, because the funds obtained from it have similar applications - e.g. the purchase of cars or buildings.

A loan is fundamentally different from leasing in terms of the financing length - in its case, it can be from a month to 10 years. Thanks to this, the repayment installment can be much lower than the leasing installment. The disadvantage of the loan is the huge number of required documents that must be submitted to obtain it.As a standard, you need certificates from the Social Insurance Institution and the tax office, in addition, the bank may request access to finances and a detailed business plan. The loan also requires some security, e.g. in the form of a mortgage. Own contribution can be much higher than in the case of leasing - its range is from 0 to 90%. The advantage is the fact that the object purchased on credit is owned by the borrower and not the institution to which the installments are paid. The downside is the inability to sell the item before paying off the liability.


As you can see, both forms have a solid set of pros and cons. One cannot clearly state the superiority of any of them - the choice is up to the entrepreneur who should take into account all the circumstances. It all depends, among others on factors such as: the company's financial situation, its creditworthiness, the industry in which it operates and the type of item needed. If choosing the right financing method is too difficult, it is worth using the help of professional financial advisors