|
Leasing |
Borrowing |
Credit |
Cash |
|
|
Interest rates |
Fixed Rate. |
Can fluctuate with the market. |
Fixed or Floating |
None |
|
Speed of Approval |
Within 4 hours after a bid has been selected for most amounts |
Days to Weeks. |
Days to Weeks. |
Instant |
|
Down Payment |
Typically, only 1 to 2 payments upfront (first & last) which are applied to your balance. |
Typically 10% - 20% of the total running amount |
Typically 10% - 20% of the total running amount |
100%. |
|
Financial Statements |
Generally unnecessary for transactions under $35 000.00 |
Generally needed regardless of amount requested. |
Generally needed regardless of amount requested. |
None. |
|
Tax Benefits |
Maximized tax benefit. Lease payment can be tax deductible when shown as an operating expense. Asset can be written off over the term of the lease. |
Depreciation can be taken over the useful life of the equipment. |
Depreciation can be taken over the useful life of the equipment. |
Depreciation can be taken over the useful life of the equipment. |
|
Equipment Obsolescence |
Used as a hedge against equipment obsolescence. Why own when you can lease? |
You own the Equipment. |
You own the Equipment. |
You own the Equipment. |