Why Lease

In today’s marketplace, more companies acquire capital equipment with lease financing rather than term loans. In fact, according to ELFA Magazine, 85% of equipment is now financed. No matter what your business size, industry or objectives, leasing with Summit Funding is a strategic decision and is one that provides ample financial and technological advantages for all acquisitions.

	Leasing	Buying
Down Payment	None, 100% Financing	Usually Between 10-20%
Monthly Payment	Fixed Rate: Even if inflation occurs, payments stay the same	Variable Rate: If market interest rates rise, so do payments
Tax Benefits	100% Deductible	Tax Depreciation on life of asset. Principal not deductible
Cash Flow	Customized programs allow for manageable budget and cash flow	Large upfront capital required
Opportunity Costs	Frees bank lines and cash for future investments	Ties up credit lines, prohibiting other investments
Reporting	Off-Balance Sheet Financing	Carried on Balance Sheet as debt
Future Value	Lessee bears no risk of future market value.	When disposing of equipment, Owner bears risk of future market value.
Flexibility	Can upgrade or replace current equipment to keep assets technologically up-to-date.	The equipment is owned, with no options for flexibility

As numerous companies are discovering, leasing provides numerous, fundamental advantages. With Summit Funding, your business can benefit from customized programs for needed equipment, without the restraints associated with purchasing.