Best Way To Pay - Commercial Lease Solutions

Best Way to Pay?

Commercial Lease Solutions Makes Sense!

	C L S	Bank Loan	Credit Card	Cash
Capital Cost	Net Present Value of your lease payments is typically less than the original equipment cost	100% of equipment cost, plus finance charges	100% of equipment cost, plus finance charges	100% of equipment cost
Upfront Expenditure	0-3 payments	Substantial down payment	None	100% of equipment cost
Payments	No payment for 30 days, then fixed monthly payments	Monthly payments of capital and interest. Often Variable	Monthly payments of capital and compounded interest. Variable.	Entire cost paid up front
Impact on cash and other availability credit	Potentially unaffected	Decreased credit availability	Decreased credit availability	Cash Gone
Tax Implications	May be deductible as operating expense depending on terms of lease and taxpayer*	Five-year depreciation (longer than useful life of technology)	Five-year depreciation (longer than useful life of technology)	Five-year depreciation (longer than useful life of technology)
Disposition at end of useful life	Asset recovery services prodided.	Buyer bears responsibility, costs and risks	Buyer bears responsibility, costs and risks	Buyer bears responsibility, costs and risks
The Bottom Line	Predictable cash flow; costs and usage compatible; potential tax benefits	Large initial capital outlay; less available credit; depreciation longer than useful life of technology	Less available credit; depreciation longer than useful life of technology	Maximum initial capital outlay; depreciation longer than useful life of technology