Why Use Lease Financing If Bank Financing Is Available?

Often customers will ask, "Why should we lease when we have a line of credit from the bank or we can obtain a line of credit from the bank"? Our customers have often indicated the following as major reasons why they have used lease financing rather than bank financing:

• Lease financing is faster than bank financing.
• Leasing companies rarely require onerous restrictive covenants sometimes contained in bank loan agreements.
• Leasing documents are generally easier to understand and shorter than bank financing documents.
• Leasing preserves bank lines in the event a need arises.
• Leasing companies tend to be more flexible than banks.
• Leasing personnel often specialize in an industry and thus understand a customer's need better than bank personnel.

For a listing of our past tips, just click here.