LEASE vs. CASH PURCHASE vs. BANK LOAN
What method is right for you?
CAN YOU... |
LEASE FINANCING |
CASH PURCHASE |
BANK LOAN |
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 your current cash flow? |
YES |
NO |
NO |
avoid affecting your bank lines of credit? |
YES |
N/A |
NO. In fact, you 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 the monthly payments from your taxable income? |
YES |
N/A |
NO |
