Leases	Loans
		Requires no down payment Finances the value expected to be depleted during the lease term	Down payments are usually required The loan finances the remaining amount
		Typically requires only a lease payment (which is usually lower than the down payment)	Typically requires a down payment and loan payment within the first payment period
		Equipment is usually sufficient to secure a lease	Borrower pledges other assets for collateral
		Claim entire lease payment as a tax deduction Equipment write off is tied to a lease term, which is typically shorter than IRS depreciation schedules (results in larger tax deductions) Deduction is taken during the same year (simplify budgeting)	Claim a tax deduction for a portion of the loan payment as interest and for depreciation Depreciation expense tied to fixed IRS schedules often not tied to the realistic useful life of the asset
		Leased assets are expensed when the lease is an operating lease Assets do not appear on the balance sheet	Owned equipment appears as an asset with a corresponding liability on the balance sheet
		The risk of obsolescence may have to be carried by the lessor	User takes all risk of equipment devaluation due to technological obsolescence