Lease vs. Loan Benefits

Financing will generally not permit you to finance soft costs associated with equipment purchases. These costs include tax, shipping, installation, training, etc. Leasing will allow you to finance these costs in addition to the equipment cost.

Financing normally requires a down payment of between 10% to 25% of the equipment cost. Leasing will generally require the first and/or last rentals in advance. This is generally only 4.5% to 7.5% of the equipment costs.

Due in part to the traditionally conservative nature of banks, a complete financial presentation is usually required to obtain any sort of financing. Leasing companies today routinely provide up to $75,000, and in some instances up to $150,000, in equipment financing with a single page application.

The most important reason to consider leasing as an alternative to financing is the ever present unexpected event... especially in today's economy. Leasing keeps your bank borrowing lines available for those unexpected expenses or opportunities.