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24 Jan 2019
Here are a couple of points for you to think about that I picked up doing some research on leasing vs. loans:
1 - Banks prefer leasing companies to finance equipment so they can finance the leasing companies. That way banks get the leasing company's expertise, selling power, processing capability and recourse guarantees. They prefer to buy paper in blocks of in millions instead of thousands. Therefore, banks do not make it easy or attractive for individuals or companies to get individual equipment loans.
2 - Common sense is: If it appreciates, buy it. - If it depreciates, lease it.
What are your thoughts? Agree or disagree? Why?
Here are a couple of points for you to think about that I picked up doing some research on leasing vs. loans:
1 - Banks prefer leasing companies to finance equipment so they can finance the leasing companies. That way banks get the leasing company's expertise, selling power, processing capability and recourse guarantees. They prefer to buy paper in blocks of in millions instead of thousands. Therefore, banks do not make it easy or attractive for individuals or companies to get individual equipment loans.
2 - Common sense is: If it appreciates, buy it. - If it depreciates, lease it.
What are your thoughts? Agree or disagree? Why?
Keith LeannonLv2
24 Jan 2019
