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.
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| 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. |
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| The equipment itself is usually all you need to secure a lease. | Collateral | A loan generally requires a pledge of other assets for collateral. |
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| 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. |
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| 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. |
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| 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. |
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| 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. |
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| 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. |