The benefits of financial leasing
Not everyone can or wants to put the full amount on the table at once for a new vehicle or machine. This is a serious investment, for which you sometimes want to spread the purchase amount over instalments. Financial lease makes this possible. Thereby, as an entrepreneur, you benefit from all kinds of tax advantages.
What is financial lease?
Financial lease is a smart way of financing. Many ZZP'ers get started thanks to financial lease, but many SME companies also do so. With this form of lease, you are immediately the economic owner of a vehicle or machine, because you have the purchase price financed by the bank. This is similar to a mortgage. The good news is that the tax authorities see financial leasing as a smart investment in your business, making you eligible for various tax breaks. Thus, leasing a vehicle with financial lease becomes extra advantageous for entrepreneurs.
The benefits of financial leasing
1 | Instant owner and no unnecessary service charges
The financial lease vehicle will be in your name. You decide when and by whom to have maintenance done. So there are no unnecessary service costs.
2 | You retain financial room
Your equity stays in your business because you don't have to put down a hefty sum in one go. This allows you to invest your assets in other things in your business.
3 | Take advantage of tax benefits
Because the tax authorities see financial leasing as a smart investment in the business, you benefit from the following tax advantages:
Interest deduction: the interest on a business loan for an asset is tax deductible from profits. An asset could be a passenger car or tractor, for example. If you put your tractor on the balance sheet with a financial lease, you can deduct the interest paid from profits. That means extra savings for your business!
Investment deduction: the investment deduction is a deduction you can use as an entrepreneur to reduce your profits (and thus the tax payable). So the investment deduction usually gives you a nice tax advantage.
Depreciation: you book the purchase price on your balance sheet and depreciate these costs annually during the term of the contract.
Reclaim VAT: you can reclaim the VAT on your purchases! This means you only have to pay VAT on your 'added value': the difference between the selling price and your purchase costs. This way, you keep more for your business activities.
4 | You decide your monthly instalment and flexible use
With financial leasing, you have the freedom to decide the term and monthly amount. In fact, you can make a down payment or pay an increased final instalment. Because you are the economic owner of the vehicle or machine, you decide how many kilometres you drive or how intensively you use the machine.
5 | Especially for start-ups and SMEs
TrucksNL works together with Financial Lease Netherlands. This leasing company focuses on start-up entrepreneurs. With them, it's not about providing annual figures, as you often don't have these as a start-up. The important thing is that the amount to be financed is commensurate with your future results. They do not stand in the way of young entrepreneurs but help them on their way.