“Firms now lease everything but time.” – U.S. News & World Report

I’m Going To Use My Bank Financing!
We hear this from time to time when we are trying to compete on a financing transaction. Most people who go with their bank do so because they are interest rate shoppers (ignoring all other aspects) and the concept of doing business with their “Bank” gives them a sense of security and fair dealing. “My Banker, my friend” is the concept. After all, you’ve had your account there for years, they take care of all of your money, they have extended you a line of credit to handle all of those little emergencies or unforeseen opportunities, he knows you by name (or at least recognizes you) when you go to the bank, his interest rates are quite low (you have compared them to other banks and leasing rates) and it keeps things uncomplicated for you if you have only one financial institution to deal with.

What’s Wrong With This Picture?
Lots of things. We are going to make it easy to compare bank financing to leasing by outlining the differences below, however, let me ramble for a minute. Have you noticed all of the bank mergers lately? Have you also noticed the turnovers that occur as a result? Your friendly banker may not be your banker tomorrow. Since relationships are so important for future needs, the relationship you developed with your banker may not be there when you need it for future borrowing needs. Additionally, have you ever been successful in getting anything done at your bank in a quick and efficient manner without a lot of unnecessary paperwork and red tape? Banks are the best example that I can think of to demonstrate the service difference between salaried help (bank employee) and commissioned help (the leasing industry). Following are some very important points to consider (besides interest rate) in making your financing decision: