Differences Between Leasing and Bank Loans

There are numerous differences between leasing and bank loans. A few of these are as follows:


Down Payment:  With Leasing merchants have equipment that is 100% financed.  With a Bank Loan, more often than not, merchants will have to come up with 20% to 30% of the total cost of their loan amount.

Interest Rates:  With Leasing, merchants have a fixed rate and a fixed payment.  With Bank Loans, merchants are often seeing an adjustable rate.

Term:  Equipment Leasing through ExecuTech gives your company the option of Leasing for a term of 12 months to 60 months (1-5 yr).  With Bank Loans, most are standard 2-3+ year loans.

Financial Reporting:  Leases are not required to be reflected on balance sheet as debt.  With a Bank Loan it will be carried on balance sheet as debt.

Tax Benefits:  Leases are usually fully deductible over the term of the lease.  Bank Loans are depreciated over the IRS's life of the equipment.

Cash Flow:  Leases help to free up cash allowing you to invest further in your business unlike a Bank Loan where your capitol is tied up in bank lines preventing expansion.

Sales Tax:  With a Lease your sales tax is financed with monthly payment, however, with a Bank Loan it must be paid in advance.

How is your leasing companies web presence?

Are you tired of your customers going to Google, typing in the name of your equipment leasing company and on the first page of Google, seeing what is shown on this picture? If so, you need to come to ExecuTech with your Equipment Leasing Needs. We treat each of our Vendors and their Merchants with executive level treatment. Call or email to find out more: (360)713-0695 or kylem@elgleasing.com

See Picture Here: [SCREEN SHOT]

Leasing FAQ's

Frequently Asked Questions

1)      How will monthly lease payments be paid?

o   All monthly lease payments are paid via ACH from customers account.

2)      Why the amount is debited different than the amount written on the lease?

o   The debit includes the basic lease payment, sales/use tax and an equipment loss and damage waiver.

3)      What if equipment isn’t on approved list?

o   Call us with your equipment and we will go to work for you to get you leasing right away.

4)      How can lessee obtain copy of lease agreement?

o   They simply call our offices and request a copy.

5)      Can lease be canceled?

o   The lease is non-cancelable for the term of the lease.  If the lessee wants to terminate the lease, they can either buy out the lease and the equipment, buy out the lease and return the equipment, or transfer the equipment to a new lease upon approval from ExecuTech.

6)      Can lease be transferred?

o   Upon approval of transfer by ExecuTech lease group, the lease can be transferred.

7)      When lease is over, who owns the equipment?

o   The owner of the equipment depends on the lease program.  With the Standard Fair Market Value (FMV) Lease program, the customer has the choice of returning the equipment to ExecuTech, continue to rent the equipment, or purchase the equipment for fair market value.  With the Dollar Buy-Out Option the customer as the option to buy-out the equipment for $1.00.

8)      If equipment stops working or is damaged, how can it be repaired?

o   The lessee would contact the equipment manufacture if under service contract or warranty.  Otherwise the lessee would contact the ISO/Vendor.

Startup Merchant Serivices Company?

Have you recently started up as a Merchant Leasing Company? Did you know the options of Leasing can help your merchants to create better cash management every month. Best part is that with equipment leasing, your customer does not have to come up with cash on hand for equipment, and in two-four years when their lease is up and the equipment is obsolete, they don't have to worry about reselling it. Call ExecuTech today to find out more on lease options for your merchant customers. And by the way, ExecuTech also can assist you in all of your leasing needs, such as office equipment, ATM's, and Point of Sale systems.

(360)713-0695

Why Lease???

Flexible terms: Leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs.

Leasing keeps your equipment up-to-date: Computers and other tech equipment eventually become obsolete. With a lease, you pass the financial burden of obsolescence to the equipment leasing company. For example, let's say you have a two-year lease on a copy machine. After that lease expires, you're free to lease whatever equipment is newer, faster and cheaper. (This is also a reason some people prefer to lease their cars.) In fact, 65 percent of respondents to a 2005 Equipment Leasing Association survey said the ability to have the latest equipment was leasing's number-one perceived benefit.

You'll have predictable monthly expenses: With a lease, you have a pre-determined monthly line item, which can help you budget more effectively. Thirty-five percent of respondents to the Equipment Leasing Association's survey said this was leasing's second-highest benefit.

You pay nothing up front: Many small businesses struggle with cash flow and must keep their coffers as full as possible. Because leases rarely require a down payment, you can acquire new equipment without tapping much-needed funds.

You're able to more easily keep up with your competitors: Leasing can enable your small business to acquire sophisticated technology, such as a voice over internet protocol (VoIP) phone system, that might be otherwise unaffordable. The result: You're better able to keep up with your larger competitors without draining your financial resources.

Do you need equipment for your business but are short on cash?

You should look into leasing! Not only does leasing help you conserve your cash, it also ensures that you don't wind up paying for equipment that becomes obsolete or unsuited for your needs.

Call or email us today to find out what we can do for your business!!!

READ MORE ON THE BENEFITS OF LEASING [HERE]

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