LEASING
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vs |
BANK
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| Fixed rate financing. Payment remains the same for full term of lease. Rates are low when compared with banks Terms and Conditions. |
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Banks usually requires floating rates for loans. Rates are low now but will change as prime changes. Banks usually require Compensating Balances or Blanket Liens. |
| Flexible terms and programs to meet your cash flow needs. |
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Banks in general don’t really want to finance your equipment because they know little about it. |
| 100% financing. Lessors will even finance the soft costs associated with the equipment. Terms of 60 months or longer available. |
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Banks often require down payments of 20 or 30 % or more and will limit terms to 36 months or less. |
| You expand your credit lines beyond your banks line of credit building more resources for your growth. |
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An equipment loan is applied directly to the credit line of the borrower, thus impeding liquidity. |
| Lease payments can be made with pre-tax dollars and may be treated as business expense. |
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Must capitalize the bank loan for tax and accounting purposes. Expensing option not available. |
