What is the difference between leasing and bank financing?
The main difference is Ownership. With bank financing you own the equipment. You make monthly payments of principal and interest to repay the loan over time. With leasing, the leasing company owns the equipment. You make a monthly lease payment to use the equipment. Most lease programs offer you the opportunity to purchase the equipment at the end of the lease period. What is the interest rate of the lease? There is no interest rate as such with leasing. There is instead a monthly payment just like the payment you would make to lease an apartment or your restaurant space. The lease payment is for your use of the equipment. The amount of the lease will depend on the cost of the equipment you purchase, the length of time you choose to lease the equipment, the purchase option you choose at the end of the lease, and the financial history of you and/or your company. What if I change my mind? Can I cancel or pay off the lease? The leasing company has made a long term commitment to purchase t
