© 2000 John Petroff

E- Term loans and leasing

There is a great deal of similarity between bank term loans and leasing when financing certain fixed assets such as equipment and vehicles. Sometimes different divisions of the same bank offer the two at roughly identical cost. Decisions are then made on the basis of particular circumstances of the corporation as to taxes, anticipated future pattern of operating profit, potential for technological obsolescence and need for flexibility.

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Last modified: Jun/01/01

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