Leasing Advantages Leasing Advantages
Lease Options
Lease Process
Lease vs. Loan
Lease vs. Cash

There are several advantages to leasing your equipment over taking out a traditional loan. If you have any questions about how this could work for your company please contact one of our leasing specialists today at 913-381-7900.

Lease

Loan

A lease requires no down payment and gives you flexible end options. Down Payment A loan requires a down payment and will finance only the remaining amount.
The equipment itself is usually all you need to secure a lease. Collateral A loan generally requires a pledge of other assets for collateral.
A lease does not contain restrictions against borrowing future funds. As long as you are current with your terms and conditions the lessor cannot disrupt the use of the equipment. Future Funds A loan agreement usually includes restrictions that require the customer to maintain certain financial ratios that may restrict borrowing money in the future.
The risk of obsolescence is reduced as there is no obligation to own the equipment at the end of the lease. You can also build in necessary upgrades as well. Obsolescence You bear all the risk of equipment obsolescence because of advances in new technology.
With a true lease you can usually claim the entire lease payment as a tax deduction. Tax Advantages With loans you can usually only claim interest and depreciation as deductions.
Leased assets can be expensed and would not appear on the balance sheet which would improve your financial ratios. Balance Sheet Loaned assets must appear on your balance sheet as an asset with a corresponding liability.
More of the cash flow occurs later in the lease term when inflation makes the dollar cheaper. Hedge Against Inflation A larger portion of the financial obligation is paid with today’s more expensive dollars.