Buying machinery on loan vs leasing it
Ownership and depreciation against flexibility and lower up-front outlay.
4 min read
What you need to know
A machinery loan makes you the owner from day one: you claim depreciation, the asset sits on your balance sheet, and after repayment the residual value is yours. Leasing keeps the outlay low and the technology current, and the rental is fully deductible as an expense.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Detailed comparison
| Factor | Machinery loan | Operating lease |
|---|---|---|
| Ownership | Yours from day one | Lessor's |
| Margin required | 10-30% | Usually nil |
| Tax treatment | Depreciation + interest | Rental fully deductible |
| Best for | Long-life core assets | Fast-obsoleting technology |
Frequently asked questions
What is the main takeaway from “Buying machinery on loan vs leasing it”?
Ownership and depreciation against flexibility and lower up-front outlay.
What should I check before acting on this comparison charts guide?
The guide includes a loan vs lease comparison covering Factor, Machinery loan, Operating lease.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.