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Leasing loan – how is it different from leasing?

A classic lease that has been popular for years is a contract that allows the customer to use a specific item in exchange for paying the agreed installments. It is concluded for a specific period, usually two or three years. The contract is signed after checking the client’s leasing capacity, thanks to which the leasing company makes sure that it is dealing with a reliable entreprenr. Most often, cars and machines are leased, thanks to which production can be streamlined, accelerated or expanded. This is a simple way for rapid development and smooth operation of the company.

How is a leasing loan different from leasing?

How is a leasing loan different from leasing?

The second, less known, but very convenient form of financing items that allow the company to grow is a leasing loan. As in the case of ordinary leasing, it can be used when buying fixed assets, such as a van or machines and equipment necessary for running a business. Although a leasing loan has been in the offer of many companies for a long time, it is still less popular than a classic leasing or bank loan. However, entreprenrs should take this form of financing into account because it combines the best features of leasing and credit.

The leasing loan from the traditional leasing differs primarily in the fact that the purchased item belongs to the entreprenr and not to the leasing company. This is of great importance as the entrepreneur is then entitled to depreciation charges. Income tax deductible may also include commission, interest on the leasing loan and various expenses related to the use of fixed assets. In this respect, this is a much more favorable situation than classic leasing, where the lessor remains the owner.

The leasing loan from leasing also differs in the period for which the contract is concluded. It is not restricted by law, and only results from the internal arrangements of the leasing company. Depending on the company and offer, it may be a shorter period, i.e. several months or longer, lasting up to ten or twelve years.

What can you use for a leasing loan?

What can you use for a leasing loan?

A leasing loan can help you grow your business in different ways. We can buy vehicles for it, such as a passenger car, van, truck or tractor. We can also allocate it to other agricultural machinery improving work on the farm. Depending on the type of business, the leasing loan can cover the purchase of necessary computers and other IT equipment, as well as medical devices needed to open a dental office or cosmetic medicine. Even the purchase of real estate for the company’s headquarters can be paid for with a leasing loan.

Who is the leasing loan beneficial for?

Who is the leasing loan beneficial for?

A leasing loan is a good solution, first of all, for people who want to take advantage of a longer loan period and the associated option of reducing the installment. Representatives of professions exempt from VAT, farmers, persons providing services without a business activity, as well as companies applying for subsidies should be particularly interested in it.
Since a leasing loan can be included in the cost of doing business and does not have to be subject to value added tax, it is a good solution, e.g. for entreprenrs planning to buy used vehicles or machines from individual sellers.
Leasing loan companies rely on their own procedures when assessing loan applications. Most often, this involves a simplified procedure, fewer formalities and a quick decision that can be obtained within a week of submitting the complete set of documents.

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