In Professional Carwashing & Detailing’s February issue, contributor Michael Ford weighs the pros and cons of loans and leases for financing carwash equipment in the feature, “Loan vs. Lease.”
“In my business, we talk to a lot of folks about different types of equipment financing. And, for the most part, business owners want to know more about equipment loans,” says Ford in the article. “However, according to the U.S. Small Business Administration (SBA), up to 85 percent of all small and medium-sized businesses lease equipment. In fact, a lease is actually more cost-effective in many cases.”
Knowing the advantages and disadvantages of loans and leases is crucial to help carwashes better understand their options, explains Ford in the article.
“However, above all else, business owners should know the primary difference between a loan and a lease,” he continues in the article. “A loan is the borrowing of money to purchase equipment, while a lease is a rental agreement for the use of equipment for a specific term. Leases normally have a purchase option at the end of the term.”
To help carwashes evaluate the benefits and drawbacks of loans and leases, the PC&D team created a brief infographic, provided below.
Read more about carwash equipment loans and leases here.
