June 6, 2023


Complete Canadian News World

Entrepreneurs are looking for money to close the lease by the end of the year

Entrepreneurs are looking for money to close the lease by the end of the year

– Without paying tax, the car can be sold after renting it after six years from the end of the contract. The life of such a car can be up to 11 years, and with intensive use in the company, younger cars often become unusable. – In the case of several or several tens of installments to be paid by the end of December, the entrepreneur must quickly collect, say, 30,000 PLN. For many small businesses, it is difficult, so entrepreneurs are looking for different ways to make money. One is to speed up transfers from contractors scheduled for January or February.

The tax changes introduced as part of the Polish system from January will affect the work of many companies. One of the biggest feelings at the end of the year is the costs associated with the company’s cars. The purchase of an operating lease of private property will still be possible, but with a tax burden – from January, revenue from the sale of such a car will be included in income from commercial activities. The entrepreneur will be required to pay income tax on the market value of the vehicle sold within six years from the date of purchase (up to six months now). Depending on the type of car and its starting price, it will be from several thousand zlotys to several tens of thousands. Selling the car without taxes and health insurance will be possible only after six years from the moment the car is withdrawn from the business. After that, this car may be 11 years old and after extensive use in the company, it often does not meet the expectations of the entrepreneur. Sometimes it will be unusable. This is a serious problem for many small businesses that will either have to pay taxes or bear the cost of repairing expired vehicles.

See also  Hit "Gas Station Simulator" on Steam. UFOs, mines and exotic cars. It will pay you back in 1.5 hours

This situation means that many small business owners are looking for additional funds to terminate their existing lease before the end of the year. In some cases, it requires payment of tens of thousands of zlotys. Companies are looking for this money, incl. in long-term bills. By turning them over to the worker, they receive the money within 24 hours and can use it to pay off the unfavorable rent.

2021 is the year of increased interest in microfinance, looking at Fine’s perspective, we see approximately 30% more funding requests, with a concurrent fourfold increase in payments to micro and small entrepreneurs. Conversations with companies show that some of them stem directly from the need to organize quick money to buy a car from leasing before changing regulations, especially in the past two months. Although many entrepreneurs associate factoring as a tool for planning and long-term handling of deferred payments, the peculiarity of this financing model means that it can also be useful in such contingencies. In particular such a model, where some entrepreneurs use the service in an “on demand” mode – I have a need, I don’t need it, I don’t use it, and financing can be obtained within a few hours of notification – says Marek Sikorsky, Director of Sales and Marketing at Finea Inc., a small loan provider. – Recently, small business owners contacted us, since during the analysis of needs we received information that they need to buy a car. Moreover, we are contacted by rental companies who have also noticed a similar need of their customers and would like to offer microcredit as an additional tool when buying a car.

See also  Best warm mist Humdifier in Canada 2023 – Experts review

In theory, entrepreneurs wanting to buy a car can look for additional money in the banks. However, the assessment of creditworthiness takes several weeks, and the decision to grant financing in the case of the SME sector is usually negative anyway. Therefore, entrepreneurs are looking for money elsewhere. A quick decision on funding and transfer within 24 hours gives the opportunity to finish the process before the end of the year. Of course, there is still time to prepare the documents required for the purchase from the rental side, but many suppliers do this within a week. Although you have to pay extra for this fast track.

INTERIA.PL Business on Twitter. Join us and read the economic news

Leasing companies go to business, so all that’s left is to raise money for the purchase. Most SMEs issue at least some invoices for their services with long payment periods – up to 2-3 months. This is simply the dominant accounting model in business: sell today – transfer in February. Financial tools that allow you to shorten this time to days and receive the money due not next year, but immediately, are very useful in this situation. As a result, this will allow us to free ourselves from the tax liability of several thousand people when selling the car in the future – continues Marek Sikorsky from Finea.

In the first three quarters of 2021, leasing companies financed the purchase of passenger cars in an amount of more than PLN 25 billion. In Poland, about 75 percent. New cars are bought “by the company”.

See also  The Moscow Stock Exchange will start operating again

Opr. How many