By Jim Hocking, GreatAmerica – If you have ever bought a house or a car, or started a business, you likely have experience with loans. A question you or your customer may be wondering is when to lease and when to borrow using a loan? In this blog, we will compare the two, as well as provide resources to equip you to have this conversation with your customers.
A loan is ideal for collateral you want to own at the end of the term; something that holds its value past the life of the agreement. A lease is best for something that depreciates quickly – like technology – and will not hold its value past the term.