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What is an equipment lease? How is it different from equipment loans?

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Leasing is an agreement where BDO Leasing (as the lessor) grants the use of an asset to you (as the client or lessee), for a fee (rental payment), for a specified period of time.

Loan, on the other hand, is the acquisition of asset through mortgage of a collateral or the same asset. In short, a lease is used to finance the use of an equipment while availing of a loan is to finance the purchase of the same.

The ownership of the leased equipment remains with the lessor, but at the end of the term, the lessee may purchase the same from the lessor. A loan on the other hand, gives the client the ownership of the asset which he amortizes for the entire amount financed.