Leasing, a bank loan or your own funds: a 2026 decision calculator

You are buying a car, a machine, IT equipment or a production line, and you have three options: a lease, a bank loan, or paying cash from your own funds. Each has different tax consequences, a different effect on cash flow and different consequences for the company’s creditworthiness. In this article we show you how to choose the best option for your situation, step by step, using real 2026 numbers.

We compare the options using the purchase of a fixed asset with a net value of PLN 120,000 (a fixed asset above the thresholds for one-off depreciation; for a passenger car, additional limits apply, described in the “Tip” box below). All calculations assume that the company is taxed on the tax scale or on the flat tax (deducting costs), is an active VAT taxpayer and has a stable income of more than PLN 120,000 a year.

Option 1: operating lease

With an operating lease the financing company (the lessor) remains the owner of the asset. You pay monthly instalments and can buy the equipment out at the end. For tax purposes the whole instalment (capital plus interest) goes straight into tax-deductible costs. You do not depreciate the asset, because formally it is not yours.

• Initial payment: 10–30% of the value (in our example: PLN 18,000 net)
• Monthly instalment: for a 36-month contract it depends on the initial payment and the buy-out price
• Final buy-out: set in the contract
• VAT: you deduct it as you go, from each instalment (100% or 50%, see above)
• Creditworthiness: the instalment weighs on the balance sheet as a liability

An operating lease is “light” in accounting terms. Start-ups and micro-businesses like it because the costs are recognised quickly, without long depreciation. The drawback is the total cost: the sum of the payments exceeds the initial value of the asset.

Option 2: finance lease

With a finance lease the asset formally goes into your company’s fixed asset register from the day the contract is signed. The tax-deductible cost is only the interest part of the instalment plus depreciation of the asset. You deduct the VAT on the whole value in one go, with the first instalment (or from the first invoice).

| Parameter | Operating lease | Finance lease | |----------|-------------------|-------------------| | Owner of the asset | The lessor | You (on the balance sheet) | | Depreciation | No | Yes (you calculate it) | | Cost | The whole instalment | Only the interest part | | VAT | On each instalment | In one go, from the invoice | | Entry in the fixed asset register | No | Yes | | Minimum term | 40% of the depreciation period | No minimum |

In practice, finance leases are chosen by companies that want to keep the asset on the balance sheet (for example when the company is valued for sale), or that want to deduct all the VAT at once on a large purchase.

Option 3: bank loan

An investment loan lets you buy the asset outright, against the seller’s invoice, using the bank’s money. From the first day the asset is yours: you enter it in the register and depreciate it. The costs are the loan interest plus depreciation of the asset. The capital part of the instalment is NOT a tax-deductible cost.

A typical calculation for a purchase of PLN 120,000 plus VAT of PLN 27,600 (PLN 147,600 in total):

1. You deduct the VAT straight away on purchase: a refund of PLN 27,600 (or a reduction of the amount payable)
2. You enter the asset in the register: initial value PLN 120,000
3. Annual depreciation (for example at a 20% rate): PLN 24,000 a year for 5 years
4. Loan interest every month: a current cost
5. The capital part of the instalment is tax-neutral and only reduces your cash

Option 4: your own funds (cash)

You pay from the company account, with no external financing. There is no interest and there are no instalments, but also no leverage effect. The only tax-deductible cost is depreciation, identical to that under a loan.

Advantages: no financing costs, no burden on creditworthiness, full control. Disadvantages: a one-off cash outflow, a risk of losing liquidity, and no benefit from “free” VAT (the refund comes within the standard 40-day period, Article 87(2) of the VAT Act).

Decision matrix: what to choose and when

| Situation | Recommendation | |----------|--------------| | Stable profit, no own funds, you want costs recognised quickly | Operating lease | | Plenty of cash, you want full control, a car for the CEO | Cash | | You plan a mortgage within the next 12 months | Cash or a loan (not a lease) | | Large investment (> PLN 500,000), the company has a good balance sheet | Bank loan | | Start-up, no track record, you need flexibility | Operating lease | | Purchase of a specialist machine with long depreciation | Finance lease or a loan |

What next

The decision on the form of financing should take into account not only taxes, but also liquidity, creditworthiness and investment plans. At Profais we prepare an individual calculation for clients using their actual numbers. We compare 3 scenarios with exact instalments, tax benefits and the effect on the balance sheet. See our revenue and expense ledger (KPiR) service or our full accounting service. We are an accounting firm, not a tax adviser. To the extent that we keep your books, we explain how the rules translate into your accounts, while tax advice and opinions that go beyond day-to-day accounting are provided by tax advisers (in line with the Tax Advisory Act).

Sources: biznes.gov.pl, PIT Act Articles 22a–22o (depreciation), Article 23(1)(4) (passenger car limits).