Leasing, or how to arrange a company without cash?

Service Business

In recent years, leasing has become more and more popular among entrepreneurs. This form of financing is seen as a beneficial alternative to credit. Who is the most profitable leasing? Are the assets financed by leasing companies only cars, vans and trucks?

Leasing in Poland - how many entrepreneurs use it?

In Poland, leasing does not have a long history - the first leasing companies started operating after the economic transformation. From year to year, the interest in leasing among entrepreneurs is growing. The Polish Leasing Association reports that after Q3 2019, the total financing of the Polish leasing industry amounted to PLN 56.9 billion. This form of financing is most often used by micro companies (with a turnover of up to PLN 5 million - 50.4%) and small companies (with a turnover of PLN 5 to 20 million). It is these entities that face the greatest limitations in access to bank loans.

Leasing is used to a lesser extent by small, medium and large companies with a turnover of more than 20 million - according to the Polish Leasing Association, they account for 28.3 percent. clients of leasing companies. In their case, less interest in leasing results from their own resources and greater possibility of obtaining financing from banks.

Not only cars - what can be leased?

Many entrepreneurs associate leasing contracts primarily with cars. For many years, it is vehicles (passenger cars, vans, trucks) that are most often financed in this way. However, these are not the only goods that can be acquired for the company in this way. Leasing companies are also happy to offer customers machines, office equipment, computers, software and real estate. In practice, at a low cost, you can gain access to all the tools with which it will be possible to run a business.

Many leasing companies show flexibility - they systematically adjust their offers to the needs of customers. In this way, entrepreneurs gain access to various items that they can use without having to invest their own funds.

What are the benefits of leasing for the entrepreneur?

The leasing contract is specific - it combines the features of a lease and a lease contract. The entrepreneur who signs the leasing contract ensures the right to use selected items without the need to acquire ownership of them. After the contract expires, he can buy the product he used, thus becoming its owner.

There are at least several reasons why it is so popular among entrepreneurs. The most important benefits that business owners gain include:

  • flexibility - leasing installments are adjusted to the client's (lessee's) capabilities, they may also be lower than in the case of a loan, because leasing is also characterized by the so-called final payment (with the option to purchase the leased asset),

  • no security - because the leasing company remains the owner of the object, most often it does not require additional security from its customers; if the lessee did not fulfill the contract (did not pay installments), the company may take over the leased object,

  • no involvement of own funds - the entrepreneur receives the tool he needs to work, without having to pay the entire amount for it at once, thanks to which he can allocate free funds to the development of the company,

  • no burden on creditworthiness - the fact that the entrepreneur uses leasing is not disclosed in BIK, thanks to which, if necessary, he can also use a bank loan,

  • the possibility of reducing the tax base by the costs of leasing installments - also on tax grounds, leasing may turn out to be very beneficial for the entrepreneur.

The simplified procedure is also important. Clients who want to take advantage of leasing usually do not have to provide the entire list of documents required by banks.

Start a free 30-day trial period with no strings attached!

What to remember before leasing?

When deciding on financing in the form of leasing, the entrepreneur should take into account his current financial situation. Although leasing companies do not require security, they check the financial condition of a potential client. All this to make sure that he will be able to pay off leasing installments.

When choosing a leasing company, it is worth paying attention to the possibility of withdrawing from financing, if necessary, without incurring additional fees. Not every lessor is willing to agree to these terms.

Equally important is the choice between operating leasing and financial leasing. Such a distinction is made by the legislator under tax law, and the basic difference is which of the leasing contracts will be able to make depreciation write-offs.