Leasing gives freedom

Written by: Marcin Balicki, the Chairman of the Management Board, Millennium Leasing

Furniture sector is around 25 thousand companies representing one of the most important elements of Polish economy. For a few years a rate of the production growth in this sector has been around 8 per cent on an annual basis and it is higher than the rate of growth in GDP. In this industry the investment in technologies increasing the production capabilities and financial resources on innovations are growing.

The largest and most scattered group in this sector contains small scale businesses. They need a simple financing providing a fast purchase of woodworking machines and equipment. Leasing meets these expectations, and additionally the entrepreneurs benefit from support of a leasing company while contracting the machinery purchases as well as negotiating the detailed provisions in the agreements concerning delivery, payment and supplier’s responsibilities terms and conditions.

Small furniture companies often use the solutions supporting business development, such as leasing with a guarantee fund, facilitating access to capital thanks to financing the machinery purchase at a low own contribution as well as a shortage of the relevant long credit record. Also, they are eager to decide to use Leasing Eko Energia that finances the investments helping in reducing the energy consumption. As part of this programme the clients receive an investment bonus at the end of the lease contract. Its amount depends on a period of the agreement and meeting the repayment of the client’s liabilities.

Bigger companies, carrying out the investment in the so called continuous process, under which the dates of machinery delivery are spread in over time, use a financing limit attractive to them, which means a 12-month guarantee for availability to the financial resources for the investment plans execution, within the early agreed structure. Thanks to such a solution the company has freedom in signing the contracts for providing the services, without any fear about their financing, an opportunity to purchase the machinery fast in the course of the duration of this limit as well as their exchange in a timely manner.

This comment was published on 2nd November 2016 in Rzcezpospolita daily