Real estate leasing - what are the benefits for the entrepreneur?
A solution that is often used by owners of companies in the first stage of development is running a business in their own apartment or house. Over time, as your business grows, you may find it necessary to provide larger, suitably equipped premises in a good location. The entrepreneur then has many options - renting, buying on credit or leasing real estate. Why is it worth using the last option?
Real estate leasing - what is it?
How leasing works - everyone knows. On the basis of the contract, the lessor allows the lessee to use a specific item against payment. In short, the entrepreneur pays the fees specified in the contract (e.g. initial payment and subsequent leasing installments), thanks to which he can use the object provided by the financing party.
So what is the difference between leasing and a rental contract? The difference between them concerns the possibility of transferring the ownership right to the thing which is the subject of the agreement, which arises in the case of the first of these solutions.
When ownership is transferred depends on the type of lease. There are two types of it - operational leasing and financial leasing. In the case of the former, the leased object remains in the lessor's property throughout the duration of the contract, which is obliged to depreciate it. The user may, however, buy and show the given item in the fixed assets register - but after the end of the contract period.
Financial leasing, on the other hand, involves the necessity to show the subject of the lease in the register of the lessee's fixed assets at the time of concluding the contract. What's more, the purchase of a given item takes place with the payment of the last leasing installment.
Year by year, leasing companies are expanding the catalog of items that can be leased. Real estate is one of the more and more often chosen by Polish entrepreneurs. The owners appreciate the convenience of such a solution. In this way, you can finance buildings for various purposes - commercial, service, production and residential. What's more, the offer of leasing companies includes individual premises as well as entire buildings, production halls, warehouses and even hotels.
Property leasing - advantages
What are the advantages of using real estate leasing?
- The financial condition of the enterprise is not as good as when the business owner applies for a loan (creditworthiness is not checked, but adequate security is important).
- Tax-favorable settlement of the purchase financed by leasing, and thus - reduction of the tax base. Operating lease allows you to include all expenses (initial payment, lease installments, running costs) as costs, and the financial lease allows you to deduct depreciation write-offs and the interest part of installments.
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Property leasing - who can benefit?
Leasing real estate is an option that can be used by virtually any company, but it should be remembered that some entrepreneurs will pay off more, and others less.
Property leasing is directed mainly to companies:
- who do not have a satisfactory credit history (because the security is real estate),
- who care about tax breaks,
- belonging to large or medium-sized enterprises with a relatively stable situation,
- that are ready for long-term installment payments.
In connection with the above, every entrepreneur who considers real estate leasing should carefully analyze the possibilities of his company, check on what conditions he can sign such a contract and compare it to, for example, a loan that is within his reach.