Loan vs. Lease
For Banterra Machine Tool Finance, we want to provide you with the strongest options for financing your equipment needs. We want to give you the opportunity to make your money an investment vs. an expense, and provide you with the options to pay off your loan ahead of schedule if you prefer.
Here are just a few reasons why financing your equipment is a better option than leasing:
Leases Are Non-Cancellable
- Banterra offers a true simple-interest loan that can be pre-paid at any time. Unlike a lease, if you pay extra at any time with Banterra Machine Tool Finance, those funds go straight towards the loan balance.
Prepayment Penalties
- Leases contain significant prepayment penalties.
- In most cases, loans with Banterra Machine Tool Finance can be prepaid with no prepayment penalties. Penalties limit customer flexibility and dramatically change the rate a customer would pay.
Immediate Rate Lock
- Banterra simple-interest equipment loan offers an immediate rate lock. You can’t get this with a lease.
Detailed Monthly Invoices
- With monthly invoices for leases, you will not see a break-out of principle and interest, which can be deceiving. With Banterra simple-interest equipment loan, monthly invoices always show you the principle and interest break-out, and gives you the option of paying ahead on your principle.
Interest Rate On Documents
- Leases do not display interest rate on the documents.
- Banterra Machine Tool Finance always quotes the true Annual Percentage Rate (APR) and displays the rate on the documents. Lease rates are usually not the true APR which is one reason why the rate is not disclosed on lease documents.