Financing vs Leasing, the basics.

Financing and leasing are two different ways for businesses to acquire equipment or vehicles.

Financing refers to the process of obtaining a loan in order to purchase the equipment or vehicle outright. The business will make payments on the loan, which will typically include both the principal and interest, until the loan is fully repaid. Once the loan is fully repaid, the business will own the equipment or vehicle.

Leasing, on the other hand, is a process in which a business rents equipment or vehicle from a leasing company for a specific period of time. The business will make regular payments to the leasing company for the use of the equipment or vehicle. At the end of the lease term, the business has the option to purchase the equipment or vehicle for a pre-determined price, return it to the leasing company, or renew the lease for another term.

One key difference between financing and leasing is that financing requires the business to make a large upfront investment, while leasing does not. Additionally, financing requires the business to take on debt, while leasing does not. Leasing also allows the business to upgrade or replace equipment more frequently, which can be especially beneficial in industries where technology and trends are constantly changing.

In summary, financing is a process of obtaining a loan to purchase equipment or vehicle outright, while leasing is a process of renting equipment or vehicle from a leasing company for a specific period of time. Financing requires a large upfront investment and taking on debt, while leasing does not. Leasing also allows the business to upgrade or replace equipment more frequently.

Because I specialize in equipment and software financing between $1k – $1mil, it’s important that I move rapidly. And with the help of my team, I’m able to move deals from application to funding within hours.

And not just for well-established companies, I close quickly on start-ups and sole props as well.

I work hard every day, rarely take a day off, and ALWAYS return calls. And with my decade-plus of experience in finance, I know how to work a deal. Call me and find out for yourself.