When leasing and when credit?


Leasing is a method of financing the purchase of vehicles and equipment for a company that is eagerly chosen by entrepreneurs. What are the advantages of this solution? How is it different from credit? The presented recording is a record from the workshop: “Levers of entrepreneurship” organized by us in Lublin on June 13, 2017.

A young entrepreneur who works full-time and would like to register his own business asked me the question: “I need a car. Can I finance it through you? “. “Of course!” That was my answer.

Leasing can be obtained a day after starting a business

Leasing can be obtained a day after starting a business

The difference between credit and leasing is that leasing can be obtained on the first day of business activity. As for the possibility of taking a loan – here you need a history of the business .

Most leasing companies are connected to banks, from where they obtain financing (of course not all). The leasing company secures itself on the object. So for example in a car. However, when granting a loan, the bank checks the borrower. His story is very important here.

You can lease almost anything

Just as we can buy everything with a loan through Good Finance, you can also lease almost anything. Not only cars but also IT equipment, furniture, real estate, offices are leased. Once leasing was associated only with a car. Today, the range of services has significantly expanded.

The 4 most important reasons why you should use operational leasing

The 4 most important reasons why you should use operational leasing

  1. It is a safe, quick and easily available form of investment financing.
  2. You gain access to machines, devices, and equipment necessary to run a business, without having to put all the cash in advance to buy them.
  3. Polish tax regulations ‘favor’ leasing. So you not only spread the purchase of equipment into installments but also take advantage of tax savings.
  4. Leasing is available to companies at an early stage of development. The reason is that even if a business idea fails, the leased asset always remains.

In the simplified procedure, we are able to lease an item in 48 hours (simplified procedure: if the lessee provides all documents and makes the initial payment. The higher the initial payment, the lower the risk on the part of the leasing company and the greater the chance for cooperation).

Operational leasing, financial leasing, credit – comparison

Who is the owner of the device?

In the case of operational and financial leasing, the lessor manages fixed assets himself. It is the owner of an item, for example, a car.

In the case of credit, the customer is the owner of the item.

Depreciation time

In financial leasing, the car depreciation period lasts 5 years. In operational leasing – 2 years. After two years, we can take over this item in full value as our property. If you buy for cash with a loan, we have 5 years to depreciate.

In financial leasing, the depreciation limit is USD 20,000, or USD 80,000.

If we are interested in a tractor unit worth USD 250,000, unfortunately, tens of thousands of USD will not be depreciated.

With operating leasing, 100% goes into the depreciation of the leasing company.

In the case of credit – 1 00% depreciation lies with the customer.

The option of entering the purchased device into costs

Operating leases are more convenient and more favorable when it comes to taxes.

If I have to depreciate myself, then I have to set up a register of fixed assets. I have to remember to depreciate this item over time. All fees can be included in the tax-deductible expenses.

In the case of financial leasing and credit – only depreciation and interest in installments can be included in tax-deductible costs.

VAT tax

In operational leasing, VAT applies throughout the duration of the contract. But beware 50% for passenger cars, 100% for vans and trucks.

In the case of financial leasing, we pay VAT once at the beginning of the contract.

It is worth noting that there are products that are subject to 8% VAT, e.g. medical equipment. When buying medical equipment in leasing, I should only choose financial leasing. Because if I would like to take the same product in operational leasing, I will pay 23% VAT. Of course, I can deduct it from the tax and customers choose this option, saying, “I prefer operating leasing because then I can deduct more VAT.” But in reality, this product will be more expensive because there is a difference between 8% and 23% VAT.


Simply put, leasing is nothing but renting, so the leasing company rents the product to us when buying a product. The rental service has a 23% VAT, so the leasing company must charge 23% VAT.

Financial leasing, in turn, is nothing but the delivery of a product. So the leasing company only charges a fee for delivering a product, not for renting it.

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