Is Financing Your Insulation Machine a Smart Strategy?
Does financing your insulation machine / blower or vacuum make sense? The chart below [1. chart from balboa leasing. used by permission] shows how financing can be a smart strategy for your business.
| Questions to Consider – Can I … | Lease | Bank Loan | Cash |
|---|---|---|---|
| get my equipment without a financial statement, no hassle paperwork and get approved in one day? | YES | NO | Uses up cash on hand |
| take advantage of tax benefits and deduct most of the monthly payments from taxable income? | YES | NO | NO |
| defer payments until equipment is up and running? | YES | NO | NO, cash outlay immediate |
| avoid financial reporting? | YES | NO, shown as debt on your balance sheet | NO |
| have no cash outlay or down payment? | YES | NO, most banks require a down payment | NO |
| match payments to current cash flow requirements? | YES | NO | NO |
| buy new or used equipment quickly? | YES | NO | YES |
