Support for industry

Author: Marcin Balicki, the Chairman of the Management Board, Millennium Leasing

Confectionary sector invests more in machinery modernization and new technologies than the other industries. A selection of the production machines and equipment is made carefully, with concern for quality, environment as well as with taking into account a very important parameter which is low manufacturing costs. It is a big challenge to the companies, and additionally, it is completely connected with a necessity of looking for an external source of financing. Our observations show that most often the entrepreneurs finance a purchase of such equipment as filling machines, cutters, dividers, ovens of different types, packaging machines and specialised technological lines. The statistical figures are the evidence of constant investment demand – this year the leasing sector has shown nearly 9% of growth year-to-year in financing the machinery for the food processing industry.

A selection of leasing allows the companies not to engage their own resources in the cost-consuming purchase, new production equipment. They can plan their expenses in a long-term period, also having in mind the season-related feature of their incomes. additionally, from the company’s point of view it is essential that the leasing companies offer support of the specialists in the negotiations with suppliers of the production machines (in the area of dates of deliveries and payments, terms and conditions of purchase, including from abroad if the machines are imported).

Micro-, small- and medium-scale enterprises representing the confectionery industry, planning to apply for subsidies from the Union’s funds, can also finance their investment with leasing and obtain a one-off fund payment from the subsidy. In such a case it is sufficient if in the application for the subsidy the company indicates a leasing company as an entity entitled to purchase a thing. The subsidies for the confectionary sector apply to the investments in research and innovations as well as raising the competitiveness.

This comment was published on 30th November 2016 in Rzeczpospolita daily