LEASE vs. CASH PURCHASE vs. BANK LOAN
What method is right for your customers... and most profitable for you?
|
CAN MY CUSTOMERS... |
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 reapplication for another loan. |
|
match payments to their current cash flow? |
YES |
NO |
NO |
|
avoid affecting their bank lines of credit? |
YES |
N/A |
NO. In fact, they 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 their taxable income? |
YES |
N/A |
NO |