Same hardware. Ten times less cash on day one.
A bank loan buys you the equipment and all of its risks. A lease buys you the use of it for the years you actually need it. The numbers below follow one real-world example through 36 months.
First monthly payment vs. a 25% down payment. The other €112,500 stays in your business.
Loan: down payment plus 36 × €11,753. Lease: 36 × €12,500, logistics and data erasure included.
* Only if you resell the fleet yourself at €125,000 in month 36. Prices for 3-year-old hardware are not guaranteed; you also carry the sale, wiping and shipping.
Cumulative cash out, months 0 – 36
Straight lines are used for readability; actual payments are monthly steps. Loan payment calculated on €375,000 at 8% p.a. over 36 months. Lease rate is illustrative; your quote depends on equipment, term and counterparty.
Where the two routes differ
| Lease with Assets Matters | Purchase with a bank loan | |
|---|---|---|
| Upfront cash | First monthly payment | Typically 20 – 30% down payment plus bank fees |
| Residual value risk | With the lessor. You never sell used hardware. | With you. Resale price in year 3 is unknown today. |
| Collateral | The equipment itself | Often additional security or personal guarantees |
| Time to decision | Days — the lessor knows the hardware | Weeks — credit committee, covenants, documentation |
| Technology refresh | Swap for newer equipment at end of term | Run old hardware or sell it yourself, then buy again |
| End of term | Extend, buy at the agreed value, or return | You own equipment you may no longer need |
| Logistics, wiping, disposal | Handled by the lessor | Your cost and your responsibility |
| Payments | Fixed for the term, one invoice | Loan instalments plus separate vendor, freight and service invoices |
| Accounting & tax | Lease liability recognised; ownership and residual stay with the lessor. Payments are usually deductible as an operating expense. | Asset and loan on the balance sheet; depreciation and interest deducted separately. Confirm with your advisor. |
What happens with a lease
- 1Send the BOMWe quote within five business days.
- 2Sign, pay month oneEquipment is ordered, tested and shipped to your site.
- 336 fixed paymentsNo surprises, no separate invoices.
- 4Month 36: chooseExtend, buy at the agreed value, swap for new, or return. We collect and wipe.
What happens with a loan
- 1Apply to the bankFinancials, covenants, security, weeks of back and forth.
- 2Pay 25% downThen order from the vendor, arrange freight and installation.
- 336 instalmentsPlus maintenance, insurance and eventual spare parts.
- 4Month 36: sell itFind a buyer, wipe data, ship, hope the price holds. Then start again.
When buying still makes sense
- You will run the same hardware for six years or more and do not plan a refresh.
- Your cost of capital is lower than the implied rate of the lease, and cash is not a constraint.
- You have an in-house team that resells used equipment and is good at it.
- The equipment is custom or vendor-locked and has no secondary market, so no lessor will price a residual.