difference between a lease and a loan

We know how to get your business financed!

Equipment leasing available nationwide for all types of equipment. We have financed small and large business, start up and well established. We work quickly with you to get the equipment that you need. Equipment leasing is a great way to obtain the equipment you need to make your business work while preserving your working capital .

The Difference Between A Lease And A Loan

LEASING BANK FINANCING
Interest Rates Fixed Rate / Fixed Payments Usually an adjustable rate
Term Up to 5 years on all
equipment over $2,500
Usually 2-3 yr.
Down Payment 100% Financing Typically 20% – 30%
of total cost
Financial Statement Not mandatory for transactions
up to $150,000, used for customers
wishing to submit financial,
and financial are not required
annually after approval
Required on almost all
transactions over $10,000,
and bank usually requires annual
updates to maintain loan
Financial Reporting Not required to be reflected
on balance sheet as debt
Carried on balance sheet as debt
Sales Tax Financed with monthly payment Must be paid in advance
Hidden Requirements None- UCC filling & processing
fee only at lease execution,
no lease termination costs
Compensating balances,
other bank charges,
loan covenants
Tax Benefits Usually 100% deductible over
the term of the lease
Depreciated over the IRS’s
useful life of the equipment
Effective Cost Lower than bank financing due to
tax benefits, lower down payment,
longer lease term and no
requirement for compensating
balances
Higher cost due to longer
depreciation schedule,
larger down payment,
adjustable interest rate,
and other hidden charges
Opportunity Cost Frees bank lines and cash
allowing you to invest
further in your business
Ties up bank lines possibly
preventing opportunities
to expand your business

apply for your equipment lease

If you have any questions please Contact Us or call 1-888-308-7160

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