Equipment Leasing vs Loans vs Cash

Lease vs. Loan
• Simple Application

• Frees up Capital

• Hedge Against Inflation

• Potential Tax Advantages

• Easy Add-ons and Trade-Ups

• Preserves Credit lines

• Fixed Payments

• No Down Payment

• No Additional Collateral

• Easier Budgeting

• No Fees

• Reduces Available Credit Line

• Extensive Documentation

• Extensive Monthly Reporting

• Often Requires additional Collateral

• Often Require s Down Payment

• Not Flexible

• Negative Impact on Balance Sheet

Bank Loans can be Canceled by Lender at anytime

 

Lease vs. Cash
• Simple Application

• Frees up Capital

• Hedge Against Inflation

• 100% Financing

• Potential Tax Advantages

• Easy Add-ons and Trade-Ups

• Preserves Credit lines

• Fixed Payments

• No Down Payment

• No Additional Collateral

• Ability To Work Within Budget

• No Fees

• Disregards Time-Value of Money

• Depletes Cash Reserves

• Negative Impact on Balance Sheet

• Reduces Cash Asset Position