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The benefits of leasing properties:

  • Flexible, fast and comfortable form of obtaining free financial resources for the companies owning the properties that meet the criteria - Property Lease Fund S.A.
  • Financing of the actual market value of the property for tax purposes (through financial leasing refundable transaction, we shall update the value of your property to the actual market value, which shall allow for use of increased depreciation rate e.g. from 1.5% to 10% per annum).
  • Shortening the normative depreciation period of the property- the cost of financing taking into account the tax shield (interest + depreciation) close to the cost of the bank financing.
  • Tax optimization - including interest and depreciation in the cost of obtaining revenue.
  • Improving financial liquidity of the company and discretion in use of other resources.
  • The debt arising from granting the financial and operating leasing is not reported to the Credit Information Office (BIK).

The pros and cons of CREDIT and LEASING to purchase the property

Credit

Leasing

Pros:
+
the lowest margin

+ there is no limit to the minimum amount of financing

Pros:
+ freedom in use of the financial resources

+ attractive financing amount; the financing amount is credited to the actual market value of the assets, and not to the current book value or amount of the investment (it is possible to obtain a financial surplus at the disposal of the customer in the case of refinancing existing debt)

+ more efficient use of the assets, recovering funds frozen in the assets, instant improvement in liquidity, no time limit for completion of the investment

+ long-term financing stability and predictability of the financial burden at the time of the agreement

+ possibility of long-term financing of the working capital without need for recurring debt

+ limitation of information obligations to a minimum

Cons:
– 
the money from the credit must be intended for a specific purpose

when the investment is financed own resources, possibility of refinancing with a credit usually occurs in a short period of time after completion of the investment

it is mandatory to transfer to the bank details of the investment and the borrower throughout the financing period

Cons:
minimum amount of financing
(e.g. Property Lease Fund S.A. - 100 000 PLN)

margin height higher than in the credit

 

We encourage you to read an interesting article entitled "Property Leasing", which comes from Comperia.pl service.

In fact, leasing can cover almost anything. The property is no exception - the most serious leasing companies offer this type of agreements.

What is the property leasing? The schema is the same as in the case of e.g. the vehicles leasing. The lessee uses the property purchased and made available to it by the lessor, who remains its owner for the entire time; the lessee provides the title for the property and receives remuneration in the form of the initial and final payments as well as instalments. When the leasing period is finished, the lease can purchase the property at a preferential price. As far as the property leasing is concerned, the time of conclusion the agreement is usually longer than i.e. in the case of the vehicle leasing, and amounts to even a dozen years.

In addition, it is worth mentioning an important thing. It can be (and often is) that the company sells its property to the leasing company, and they both conclude the agreement for further use of the building. This is so-called the refundable leasing. In this way, the "frozen" capital is released, and it can be used e.g. for the investments, and leasing instalments are paid from the current revenues. Indeed, in the short time the company losses due to leasing compared to the situation if it owns the property all the time, but it is worth to use such a leasing option and have access to cash when it is needed the most, e.g. to purchase the necessary machinery. The gained capital can greatly exceed the cost of leasing.

What property can be leased? The range is very wide, as leasing can cover almost anything if only the potential lessee and lessor meet. This can include office buildings, production halls, warehouses, logistics centres, commercial premises, or utilities, specialized buildings such as greenhouse or refrigerator, lands etc.

The property leasing is an alternative to a bank credit. What is the benefit over a debt in the institution? First of all it concerns availability. The banks definitely do not support all initiatives willingly. As someone "wise" once said, the bank would grant you a credit only when you convinced it that you needed money. There is some meaning in it, let us remember that in the case of the companies' properties it is not about the building worth several hundred thousand, but often a dozen/tens of millions. The company needs to show off not just any credit capacity to obtain such a credit. Meanwhile, in the case of leasing it is much easier – just because the property belongs to the leasing company and the situation does not cause such problems where the lessee fails to obey its obligations. The banking and debt recovery proceedings shall be much more burdensome for the mortgage lessor, so it prefers to protect itself with strict requirements.

Very complicated tax issues are not to be missed, the time of the project should be taken into account and try to analyse the possible changes in the company and its environment over the next several years.

What about the documents required for conclusion of the leasing agreement and being granted the credit? Both cases require similar necessary documents, inter alia, the agreement of the company, NIP, REGON, the list of obligations, including for the Social Security and the Tax Office, the copy of the land register, the financial statements.

Comperia.pl (16.08.2013r.)

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