A leasing loan is a financial product that is very similar to a loan. During the term of the contract, the borrower remains the owner of the transferred property because it allows full financing of the funds. Leasing loans for a long time constituted a bridge for applicants for EU subsidies. The product quickly gained popularity and is now also granted to entrepreneurs without subsidies.
Who can benefit from a leasing loan?
The leasing loan is mainly used by entrepreneurs or farmers who apply for EU subsidies. With the aid of the funds obtained, fixed assets necessary to obtain a grant can be financed. This is one of the basic rules of a leasing loan . The funds obtained cannot be used for any purposes, but only for fixed assets. Financing is provided by the borrower a leasing company. When it comes to paying off a liability, the product works on similar principles as a cash loan, but often has more flexible rules.
What are the main advantages of a leasing loan?
The most important asset of a leasing loan are more flexible rules. Due to the fact that the loan is granted by a leasing company, formalities have been minimized. No own contribution is required, repayment can be spread over a period of 10 years, and the funds raised can be used to finance both new and used equipment. The customer can conveniently adjust the installments to their needs. What is particularly important, the transferred money at the beginning of the contract become the property of the client, which allows him to depreciate acquired fixed assets.
What is the difference between a leasing loan and traditional leasing?
Under classical leasing, the leasing company remains the actual owner of the transferred funds. However, in the case of a leasing loan , the customer immediately becomes its owner and repays the money obtained in the same way as a cash loan. In the case of a leasing loan, the customer has the right to apply for a VAT refund and can afford to finance the equipment with an EU grant.