155 Commerce Park Dr, Suite 2A
Westerville, OH 43082
Tel: 800-481-0859
Tel: 614-865-4620
Fax: 614-865-4670

Lease vs. Cash

To help assist in your decision, Corporate Equipment Finance Company, LLC can provide you with a custom Lease vs. Cash analysis. Please e-mail or call and we will prepare a custom analysis for you today.

What are my upfront costs?

  • Lease: Generally, the only upfront cost is equal to two payments as a security deposit. The deposit is refunded at the end of the term, once all the terms and conditions of the lease have been satisfied.
  • Cash: The full purchase price plus installation and tax must be paid immediately.

What happens if I have to upgrade?

  • Lease: A discounted payoff is calculated and then rolled into the new lease. No additional cash outlay is needed, except for the standard two payments as security when the new lease is started.
  • Cash: The asset value must be written off at a loss.

How do I add equipment?

  • Lease: Equipment is added through an increase in the monthly payment so that payments on both pieces of equipment end at the same time. No additional security deposit is needed.
  • Cash: You must pay for equipment, installation and tax upfront. You could end up with different depreciation schedules.

What is the tax effect?*

  • Lease: A Fair Market Value (FMV) lease is designed so that the entire monthly payment is a tax deduction.
  • Cash: The equipment is depreciated per IRS rules over the life of the equipment, which may be longer, than the useful life of the equipment.

What is the accounting treatment?*

  • Lease: With a FMV lease the entire payment is an operating expense and fully tax deductible.
  • Cash: The equipment is an asset and is listed on your balance sheet.

* Please seek the advice of a tax/accounting professional to evaluate your specific lease structure.

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