Let's face it: The ability to secure equipment - often prohibitively expensive, especially for smaller operations - is a vital part of surviving in any business environment. Perhaps the first and most important part of the survival strategy then isdemystifying the financial options available to commercial equipment purchasers. Buying/leasing dynamics. Plainly put, when a customer chooses a purchase loan to buy a mower, they pay monthly installments for the length of their loan (unless they chooseto pay it off sooner), after which the unit is theirs. Traditionally, a loan affords simplicity, flexible terms, few restrictions and a chance to build equity. Leasing - long held to be buying's more mysterious alternative - is based on the notion that the user pays merely for the used portion of a vehicle or equipment unit. Monthly (or other interval) payments represent only the amount the unit depreciates in market value over the leasing term plus interest. With that, leasing offers an option that isgenerally less expensive upfront than taking out a loan to buy a mower, with monthly payments averaging about 10 to 12 percent lower than those of a loan, explained Bob Cronk, vice president, Advance Acceptance, Plymouth, Minn.
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