Best for companes that prefer to own the equipment at the end of the term but would like to use the many advantages of leasing. A finance lease does not stress your credit as a traditional bank loan does. The lease contains a $1.00 purchase option at the end of the term.
Finance Lease (Capital Lease)
Best used for equipment that will definitely be replaced at the end of the term. Computers, technology and other equipment that becomes obsolete. The lease contains an fair market value purchase option at the end of the term.
Operating Lease (True Tax Lease)
With equipment leasing, your capital is conserved because you are only paying for the use of the equipment thereby maximizing cash flow and ultimately improving your bottom line. Another attractive aspect of leasing is that "soft costs" can be included in the lease finance agreement. Bank loans do not allow "soft costs" such as shipping, taxes, training, installation and software to be financed.