Leasing Fuels Investment, But Polish Firms Hesitate Due to Risk Aversion

Leasing plays a vital role in financing investments for Polish small and medium-sized enterprises (SMEs), with over half of these firms considering it essential support for their projects. The Polish Leasing Association highlights that without this financing option, a significant portion of entrepreneurs would scale back or postpone their investment plans.

Monika Constant, president of the Polish Leasing Association, noted that leasing is an "underappreciated engine" of the Polish economy, with over 70% of its clients being micro, small, and medium-sized firms. In 2025, leasing financed nearly 120 billion PLN in investments, and the sector anticipates continued double-digit growth. However, a major hurdle to increased investment is the cautious nature of Polish small business owners, according to Andrzej Krzemiński, president of Pekao Leasing.

Data from the National Bank of Poland indicates a low propensity for investment among businesses, with optimism levels also subdued. Approximately 70% of SME investments are financed through retained earnings, rising to 85% for R&D and innovation. Krzemiński stressed the need to build confidence among entrepreneurs, assuring them that they don't need to deplete all their savings for development.

While funds from the KPO and national sources total 300-400 billion PLN, their impact on smaller firms' investment decisions is slow. Tomasz Bogus, president of PKO Leasing, observed that financing primarily supports replacement investments, such as updating machinery or vehicles, rather than fundamental business model changes. Barriers include risk aversion, regulatory uncertainty, and energy costs, which can destabilize small firms more than large corporations.

Dominika Żelazek of Orlen Kolej emphasized that the quality of project preparation is paramount for investment decisions. A project is viable only when it addresses operational needs, risks, and financing simultaneously. Precise requirement definition and dialogue with suppliers directly influence financing availability and risk levels.