Equipment Lease Financing Versus Loan Financing
When you’re looking at equipment lease financing as an alternative to an equipment loan, there are a number of things to consider.
First of all, from a risk management point of view, the equipment under an equipment lease is owned by the financing company, not the borrower o lessee. With an equipment loan, the borrower is still the owner of the equipment.
For a taxation point of view, depending on how a lease is structured, there can be differences in the way a lease is written off compared to how things work with an equipment loan in terms of accounting and taxation reporting.
