Leasing

• Sales tax payable over term of lease.
• Conserves valuable working capita.l
• Conserves Cash – 100% financing (no down payment).
• Fixed rate for life of lease.
• Keeps credit lines open.
• Transfers risk of equipment obsolescence to lender.
• Leasing can save your money.
• Eliminates risk of Alternative Minimum Tax.
• Recorded off the company’s balance sheet.
• Payments can be structured to creatively fit the borrower’s needs.
• Provides a quick and simple financing solution that can close in days.
• Saves bank credit lines for growing your business.
• Term of lease can be longer (60-72 months).
• Asset can be upgraded easier.
• Payments may be 100% tax deductible.
• Finance soft costs like freight, warranties, installation, training, etc.
• Reduces taxable income as lease is paid for with before-tax monies.

Bank Borrowing

• Sales tax due up front.
• Short term money is not used for long term purpose.
• Requires large down payment (usually 20% to 30%).
• Floating Interest Rate.
• Uses credit lines that could be utilized for operations 100% obsolescence risk.
• May be more expensive than leasing.
• Potential liability to Alternative Minimum Tax.
• Booked on balance sheet.
• Inflexible payments.
• Normally requires more time and paperwork to execute.
• Uses bank lines for depreciable assets.
• Term of loan is restricted (12-36 months).
• Asset harder to dispose of.