down payments are typically required.

loan finances the remaining amount .

no down payment required -just the first and last payment to start.

finance the value of goods expected to be depleted during the lease period.

typically requires both a down payment and loan payment in the first payment period.

typically financial commitment is tied only to the lease payment obligation.

borrower pledges other assets for collateral.

the equipment itself can prove to be sufficient to secure a lease.

claim a tax deduction for a portion of the loan payment as interest and for depreciation.

depreciation expense tied to fixed IRS schedules often not tied to the realistic useful life of the asset.

owned equipment appears as an asset with a corresponding liability on the balance sheet.

claim entire lease payment as a tax deduction.

equipment write off is tied to a lease term, which is typically shorter than IRS
depreciation schedules (results in larger tax deductions).

deduction is taken during the same year. Simplified budgeting and financial reporting.

user takes on all risk of equipment devaluation due to technological obsolescence.

lease payments are expensed when the lease is an operating lease.

assets do not appear on the balance sheet .