Leasing with a de minimis guarantee from BGK available to transport companies

At the end of April 2024, 71% of lease agreements with BGK's de minimis guarantee on the market were handled by Millennium Leasing. The value of the financing secured by the guarantee is PLN 570 mln.**

- Currently, there are only five leasing companies on the market that allow entrepreneurs to take advantage of leasing secured by de minimis BGK guarantees and I am proud that we are a leader in the implementation of such agreements. At Millennium Leasing, from the very beginning, we have decided that providing our clients with access to all solutions offered by aid institutions for leasing is our strategic goal. We believe it is appropriate to give clients the opportunity to use any existing aid instrument if they consider it reasonable for their business – says Marcin Balicki, President of the Management Board of Millennium Leasing..

Millennium Leasing was the first company on the market to grant a lease with a BGK guarantee in 2021, in the first edition of this programme. In the case of de minimis guarantees, it was the first leasing company to sign an agreement with BGK.

The BGK de minimis guarantee is one of the forms of public aid for entrepreneurs, granted in the form of security for loan repayment, including leasing. The de minimis guarantee is not a cash subsidy because it does not involve the transfer of funds to the entrepreneur. Therefore, it does not have any tax consequences.

- The most important benefit of leasing with a de minimis guarantee is the extension of the availability of financing for many enterprises. In addition, the leasing offer with a de minimis guarantee itself is more advantageous compared to the standard offer in terms of margin, financing amount, contract period and required collateral – adds Marcin Balicki.

What is more, at Millennium Leasing, entrepreneurs can take advantage of the possibility of financing unusual, hard-to-sell leased items, e.g. production lines. Due to the growing importance of supporting sustainable development, the Company offers entrepreneurs financing of environmentally friendly assets (including photovoltaic panels, heat pumps and electric vehicles) also with the use of BGK's de minimis guarantees.

The de minimis guarantee may cover up to 80% of the financing amount of a single lease transaction, with a maximum guarantee period of 10 years. The maximum amount of the guarantee in a single contract is Euro 800,000. The leasing offer with a de minimis guarantee can be used by companies from the micro-, small and medium-sized enterprise sector.

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Millennium Leasing is part of Bank Millennium capital group. It is a company with one of the longest track records on the leasing market in Poland. It has been operating for over 30 years. Its activities cover financing of varied fixed assets: motor cars and delivery vans, machines and equipment for majority of industries, heavy transport vehicles (including road, rail, water and air transport), as well as real estate. The company’s clients include both microbusinesses and corporations.

More information on www.millennium-leasing.pl.

* Regulation of the European Union Commission 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid

** Based on BGK's announcement on the number of guarantees granted at the end of April 2024.