Loan: rates are usually floating and based on Prime Rate or another index such as LIBOR. As the index fluctuates so does the monthly payment. This is beneficial during periods of falling interest rates, and detrimental when interest rates rise.

Lease: payments are generally fixed for the life of the lease unless the lease has special provisions.

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. Out-of-pocket costs are usually limited to the first month's investment or a small security deposit.

Loan: banks use fees to boost their rates of return on loans, including application fees, origination fees, commitment fees, schedule fees, funding fees and charged for expenses associated with approving and executing the loan application.

Lease: in 99% of small-ticket equipment leases (up to $75,000) there are no origination, commitment or application fees. Documentation fees are minimal, ranging from $95 to $250 depending on the transaction size.

Loan: banks tend to be somewhat less flexible than leasing companies. That's good if you are looking for a standard term, not so good if you need flexibility.

Lease: in most cases you choose the terms, the purchase option, and the down payment of your equipment lease. We offer 60-month terms on most equipment and up to 84 months on some asset classes. Custom terms can easily be arranged.

Loan: banks won't finance equipment they don't understand or feel has limited collateral value.

Lease: our internal funding capability ensures we can finance for most equipment types.

Loan: regardless of the amount requested, most banks won't begin to review your credit until you supply a full financial package.

Lease: our business is convenient. We are service oriented. We offer lease programs up to $20,000 without financials. Odds are we can approve your equipment lease with just our simple application.

Loan: banks are slow credit decision makers. It can take weeks to prepare your request and bring it to the credit committee for review.

Lease: more than half of our approvals are issued the same or next day.

Loan: banks usually secure their loans by requiring additional collateral such as real estate, equipment, inventory, receivables or your house. In fact, it is common practice for banks to file a blanket lien against all assets of your company.

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 or semi-annual basis. If the borrower fails to maintain those ratios the bank can call the loan. They can also place restrictions on or limit future borrowings from any institution.

Lease: generally there are no such restrictive covenants.