+ Benefits of Leasing

Vendor Benefits | Customer Benefits | Leasing FAQ | Leasing vs Loans or Cash

When you look at all that’s involved with cash purchases, bank loans or installment deals, and considering the advantages of keeping your cash, you’ll often find leasing to be a better, simpler, and less costly alternative.

The charts below compare leasing vs loans or cash. Ask us for a Lease vs Loan analysis for your situation. Call us to talk to a Commercial Finance representative.

Bank Loans Lease Financing
Often require compensating balances
Results = higher rate
 You can finance 100% of the equipment costs and delivery
Rate can increase Rates are fixed and there are no sizable down payments
Bank may call loan anytime Fixed terms and payments can be structured to match your seasonal cash flow
Collateralization – a GSA lien can be filed on virtually ALL your assets You only have a lien against the leased equipment

Cash and machines are working assets. Without your cash being tied up in the equipment, you have both assets working for you! This is particularly important under conditions of high-priced money, inflation and cost squeezes.

Leasing vs Loans or Cash

  Bank Financing Tax Lease Cash Purchase
Net Purchase Price $50,000 $50,000 $50,000
Down Payment @ 20% $10,000 0 0
Amount Financed $40,000 $50,000 0
Interest Rate (APR) 10.5% 13.75% 0
Loan/Lease Term (years) 5 5 0
Monthly Loan/Lease Pmt. $819.33 $1,157.21 0
Interest Lost @ 7.5% $4,356.28 0 $21,781.46
TOTAL PAYMENTS $63,516.28 $69,432.30 $71,781.46
First Year Cost
Down Payment @ 20% $10,000 0 0
Monthly Loan Payments $9,832.00    
Monthly Lease Payments   $13,886.46  
Purchase Price     $50,000
Lost Interest $750.00 0 $3,750
TOTAL FIRST YEAR COST $20,582.00 $13,886.46 $53,750.00
Tax Savings
Interest Paid $9,160.00 0 0
Depreciation Available $40,000.00 0 $40,000.00
Total Deductions $49,160.00 $69,432.30 $40,000.00

Ask us for a Lease vs Loan analysis for your situation. Contact us to talk to a Commercial Finance representative.

 


 
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