Different types of leases and loans
What are the differences between leases and loans?
A lease is a contract where the lessor (financial institution) allows the lessee (customer) to use an asset for a specified period of time in return for a recurring payment. At the end of the term, the lessor retains ownership of the asset in use.
A loan is borrowing funds from a financial institution by an individual or enterprise to purchase an asset. At the end of the term, the individual or enterprise will own the asset.
What are finance leases?
Finance leases allow customers to treat their IT solutions as a capital expenditure and spread the payments over several years. A finance lease provides the ability to deploy equipment when required while structuring payments.
What are operating leases?
Operating leases are designed for businesses that need constant access to the latest technology without the burden and risks of ownership. An operating lease is a contract that permits the use of an asset but does not convey ownership rights of the asset. At the end of the initial term, customers have the option to return the equipment, continue the lease, or upgrade in whole, or in part, to newer technology.
What are loans?
Loans allow customers to retain ownership upon purchase and free up capital for day-to-day business. Payments can be structured to match deployment and economic benefit.
What is sale and leaseback?
Sale and leaseback help businesses migrate to Cisco solutions and overcome the obstacle of legacy equipment and outstanding leases; thereby avoiding asset write-offs during technology migration. These transactions are designed for businesses which need to purchase assets first, for tax or other reasons, before leasing them.
What are lifecycle payment solutions?
Lifecycle payment solutions bundle hardware, software, and services into one simple, predictable payment without the stress of ownership. Save cash with no upfront costs and keep your technology current with flexible refresh options.
