Difference Between A Lease And A Loan

  • Home
  • Difference Between A Lease And A Loan
Lease Buy

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

Testimonials

Slide
 Equipment Leasing Programs For Businesses Nationwide - Testimonial
Slide
 Equipment Leasing Programs For Businesses Nationwide - Testimonial
Slide
 Equipment Leasing Programs For Businesses Nationwide - Testimonial
Slide
Equipment Sale Leaseback

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