Not everyone can put the full amount for a new truck, trailer or forklift on the table all at once. This is a serious investment, for which you sometimes want to spread the amount of the purchase over terms. Financial leasing makes it possible to buy a new or used vehicle. As an entrepreneur, you also benefit from all kinds of tax advantages.
In this blog article you will read:
What is financial lease?
Financial lease is a smart way for example truck leasing for small and medium-sized companies and self-employed people. With this form of lease, you are immediately the economic owner of the truck because you will have the purchase price financed by the bank. This is similar to a mortgage. The good news is that the Tax authorities sees financial leasing as a smart investment in your business, making you qualified for various tax benefits. This makes leasing a vehicle with financial lease extra beneficial for business owners.
The benefits of financial lease
1 | Direct owner
The financial lease vehicle will be in your name. You decide when you have maintenance done and how much you drive in it. You will keep the truck until the end of the lease period.
2 | Capital stays in the company
Your capital stays in your company because you do not have to pay a large amount of money all at once. So you can invest your capital in other things in your business.
3 | Take advantage of tax benefits
Because the tax authorities see financial leasing as a smart investment in your company, 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 can for example be a passenger car or tractor. If you put your tractor on the balance sheet with a financial lease contract, 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 therefore the payable taxes). So the investment deduction usually gives you a nice tax advantage.
- Depreciation: you book the purchase price on your balance sheet and write off 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 | Flexible
With financial leasing, you have the freedom to determine the term and the monthly amount yourself. As the economic owner of the vehicle, you also decide how many miles and how long you drive.
5 | Also for starting entrepreneurs
With some leasing companies, it is also possible to lease vehicles without providing annual figures.
Don’t want to pay the full amount at once for a tractor unit, truck or other type of vehicle? TrucksNL cooperates with leasing companies to make it easier for you. Check out on TrucksNL which vehicles qualify for leasing by filtering on the left side of the ad page. You might also be interested to read: The benefits of operational leasing.