
Logic of LeasingIt's economical and flexible, and puts fewer demands on your cash flow! Lease vs. Cash Purchase vs. Bank Loan What method is right for you? |
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Customer |
Lease Financing |
Cash Purchase |
Bank Loan |
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| Acquire equipment without a substantial cash outlay? | Yes | No | No. Most banks require a large down payment. | |
| Upgrade or add equipment without difficulty? | Yes | No | No. Most banks require re-application for another loan. | |
| Match payments to their current cash flow? | Yes | No | No | |
| Avoid affecting their bank lines of credit? | Yes | N/A | No. In fact they will be affecting it a great deal. | |
| Delay payments until after the equipment begins to pay off? | Yes | No | No. Payment is required right away. |
|
| Get approval for financing in one day? | Yes | N/A | No. It could take days or even weeks. | |
| Deduct all or most of their monthly payments from their taxable income? | Yes | N/A | No | |
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