Poland’s entry to the European Union has given a strong boost to the development of leasing in the country. Our share in the European market now exceeds 2.6% and is higher than the share of Austria, Norway and Belgium and comparable with the share of Sweden. The first lease firms were set up in Poland in the early 1990s. Today, one in three investments on the real estate market is funded through a leasing arrangement – we have achieved the European standard in this respect. Lease companies have also made a great contribution to the development of the Polish automotive market, with 70% of company cars being leased now. Fleet companies have contributed modern schemes and a new quality. Leasing means more than merely a financial service.
Over the 15 years lease companies have won the trust of entrepreneurs. Independent surveys show that as much as 72% of leaseholders are satisfied with leasing and 75% would recommend it to other businesses. The trust built over the 15 years in lease companies and leasing as a form of funding is paying off, with growing interest on the part of local governments and entrepreneurs seeking refunds for their projects from EU sources and choosing leasing to finance public-private partnership projects.
But is cooperation between the public sector and lease companies strong enough? In 2007, the value of public projects carried out in Europe almost equalled the value of the whole leasing market – EUR340 billion. But the share of leasing in funding public projects accounted for a mere 3%. Considering that at the same time the share of commercial projects financed through leasing arrangements accounted for 21% in Europe and 17% in Poland, it is obvious that there is a large potential for the expansion of leasing into the public sector.
Leasing is not only about funding. It is a package of services in which funding is the most important part, but only a part of a larger whole, which translates into more favourable terms for the leaseholder. However, this understanding of leasing is not universal. The public sector often makes a mistake by perceiving leasing exclusively as a financial instrument. Meanwhile, lease companies have the knowledge and experience which offer a strong potential for large infrastructure projects. Many public-private partnership projects have been successfully implemented in Europe with the involvement of leasing arrangements, which shows that the public sector may benefit from leasing.
The Polish Leasing Association is one of the founders of the PPP Centre Foundation, whose mission is teaching local governments how to work with business. In fact, both sides have to learn. In Europe, leasing has been present for 50 years now. In Poland, the introduction of the word “leasing” into the Civil Code in 2001 was a great development for the economy and the Polish language – the new word had to be accepted by the Council on the Polish Language.
The trust and credibility built over the 15 years should not be taken for granted. The Association is constantly working to improve service standards and often initiates legislative changes.
So far lease companies have been rated the highest of all financial institutions in terms of the quality of offers prepared for applicants for EU subsidies and applications involving leasing arrangements have had the best chances of success. However, until recently regulations in force were not compatible with the nature of lease contracts and consequently made the effective use of leasing opportunities impossible. Thanks to efforts made by the Polish Leasing Association, in conjunction with the Polish Bank Association and the Ministry for Regional Development, amendments have been made to the national guidelines for the eligibility of projects for EU funding. The amended provisions allow for the use of leasing to the full extent. Under the amended guidelines, leaseholders have the right to a one-off refund of the price of the item leased rather than only refunds of leasing instalments.
Among the Association’s priorities is the development – or, to use a more appropriate word, the launch - of consumer leasing in Poland. It would stimulate the economy in a natural way.
The share of consumer leasing in the Polish movable property market does not exceed 0.1% compared to the EU average of 15%. The reason behind this disparity is that Polish regulations are anachronistic. The legislator has not thought of a situation in which a private individual who does not conduct business operations could be a party to a lease contract.
As the economy and finance ministries have shown interest and readiness to support amendments to relevant regulations, one can reasonably hope that the consumer leasing market will soon kick off in Poland.





The Polish Leasing Association (ZPL) brings together
35 lease companies and the Polish Association of Vehicle Hiring and Leasing, which has a special status as a collective member of ZPL. The Association represents over 90% of the Polish leasing market and is a member of Leaseurope, an organisation of 46 leasing associations from 34 European countries.