Tax treatment - The IRS does not consider an operating lease or a true lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income. The equipment does not have to be depreciated over five to seven years.

Balance sheet management - Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.

100% financing - With leasing, there is very little money down - perhaps only a security deposit is due at the time of the lease. Since a lease does not require a down payment, it is equivalent to 100% financing. That means that you will have more money to invest in sustainable, revenue-generating activities.

Asset management - A lease provides the use of equipment for specific periods of time at fixed payments. The lessor assumes and manages the risk of equipment ownership.

Speed - Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. Most of the time your application can be approved and you can have your equipment very quickly.

Improved Cash Forecasting - The lessee knows the amount and number of lease payments so they can accurately forecast the cash requirements for equipment.

Flexible end of term options - Return, renew or purchase.

Lease Loan Cash Purchase
A non-cancelable contract extending over a fixed period of time. A non-cancelable contract repaid in regular installments. Using working capital acquisitions.


  • 100% financing
  • May be off-balance sheet financing
  • Preserves bank lines
  • Conserves capital
  • May provide tax advantages
  • Fixed terms & payments
  • Full use without ownership
  • Creates new credit source
  • Lets you pay for the equipment as you use it


  • Benefits of ownership
  • May provide tax advantages


  • No financing charge
  • Benefits of ownership
  • May provide tax advantages


  • Non-cancelable agreement


  • Balance sheet financing
  • Relatively short term
  • Extensive paperwork
  • Covenant restrictions
  • Uses credit lines
  • May require compensating balances, down payment, and origination fee


  • Depletes cash reserves
  • No obsolescence protection