LEASE VS. BANK LOAN

Lease: No Blanket liens on business. Bank: Requires blanket liens on
company as well as personal
property.
Lease: Low up front cost- keep Working
Capital in the business. Bank: Usually require 20% down.

Lease: Off balance sheet financing – A Bank: Complete financials required.
Lease is treated as a rental expense – 2 years Personal and Corporate Usually a lease is not considered a debt. Federal Tax Returns.
This strengthens the balance sheet
(this should be reviewed with your financial professional).

Lease: 100% write-off if structured as an Bank: Keep Credit Lines available
operating lease. For emergencies.

Preserves Bank Credit Lines. Bank: Loans reduce available credit
Lines.
Leases do not show up on credit reports.
Bank: Loans can cause ratio, or
Simple application with fast approvals. covenant problems.