Loan – Rates are usually floating and based on Prime Rate.
Lease – Payments are generally fixed for the life of the lease.
Loan – Banks generally lend a portion (60%-80%) of the equipment cost; exclusive of soft costs such as shipping, training, installation, etc.
Lease – Able to finance the complete purchase including soft costs and sales tax.
Loan – Banks use fees to boost their rates of return on loans, including application fees, origination fees, commitment fees, schedule fees, funding fees and charges for expenses.
Lease – In 99% of small-ticket equipment leases (up to $150,000) there are no origination, commitment or application fees.
Loan – Banks tend to be somewhat less flexible.
Lease – In most cases you choose the terms, purchase option.
Loan – Banks won’t finance equipment they don’t understand or feel has limited collateral value.
Lease – Our funding capabilities ensures we will finance virtually any equipment that generates income for your business.
Loan – Full financial package.
Lease – One page application.
Loan – Banks are historically slow in making credit decisions.
Lease – Approval within days.
Loan – Banks usually secure their loans by requiring additional collateral such as real estate, equipment, inventory, or receivables.
Lease – In most instances, the only collateral is the equipment being leased.
Loan- Bank loans often require that the borrower maintain certain minimum financial ratios and report them to the bank on a quarterly basis.
Lease – There are no restrictive covenants.
Loan – A loan requires the end user to invest a down payment in the equipment.
Lease – A lease requires no down payment and finances only the value of the equipment
Loan – End users may claim a tax deduction for a portion of the loan payment as interest and for depreciation which is tied to IRS.
Lease – When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction.
“Lease – (Rent to own) always lease equipment that depreciates in value”
Diamond Financial Services
262 Highway 36 West Keansburg, NJ 07734
732-787-9191 or 877-508-2274 Toll free 732-495-7058 fax
FranchiseLeasing.com, in affiliation with Diamond Financial Services in New Jersey, offers the best in securing the financing you want for all your franchise equipment needs