Lease vs. Loan
| Lease |
Loan |
- Frees up capital
- Hedge against inflation
- 100% financing
- Simple application
- Potential tax advantages
- Easy add-ons and trade-ups
- Preserves credit lines
- Fixed payments
- Longer terms
- No down payments
- No additional collateral
- No fees
|
- Reduces available credit lines
- Extensive documentation
- Extensive monthly reporting
- Often requires additional collateral
- Often requires down payment
- Not flexible
- Negative impact on balance sheet
- Bank loans can be cancelled by lender at anytime
|
