Equipment Financing - Leasing

Lease Vs. Loan Comparison

Leases can be credit approved in as little as 15 minutes!
Begin capitalizing on the use of your equipment sooner. Bank loan approvals can take up to 6 weeks (or more).

Leasing is a cost effective alternative offering significant tax savings to a traditional loan.
Lease rates are often lower than a bank rate on an “after tax” basis.

Leasing is typically 100% financing.
Traditional lenders usually require a 10 — 20% down payment.

Leasing provides the stability of a fixed monthly payment.
Typical bank loans provide a variable (floating) rate and as interest rates increase so does the monthly payment.

Leasing does not require expensive set up fees.
Traditional lenders often require up-front application fees ranging from 1 — 3% of the amount borrowed.

Leasing can typically be arranged without financial statements.
Banks require financial statements on an ongoing basis to monitor business performance resulting in additional fees and accounting costs.

Leasing is hassle-free.
A typical ban is a ‘demand loan” which enables the lender to demand full and immediate repayment of the loan in the event of poor business performance.

Leasing generally requires only your equipment as security.
Traditional lenders usually require a General Security Agreement (GSA) giving them additional security in all assets.

Leasing makes good business sense.
Many accountants advise their clients that if the asset depreciates in value “lease it", if it appreciates in value “buy it".