Guide to Equipment Leasing & Financing

Avoiding Bank Restrictions with Equipment Leasing

September 26th, 2007 Posted in Leasing vs. Bank Loans

Leases don’t include blanket liens, restrictive covenants, rate escalator clauses, “call anytime” provisions, compensating balance requirements (a five year 6% loan with a 20% compensating balance requirement actually yields about 15.7%) or any of those other nasty little surprises that tend to be part of traditional lending arrangements.

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