- Simple Application
- Frees Up Capital
- Hedge Against Inflation
- 100% Financing
- Potential Tax Advantages
- Easy Add-ons, Trade-Ups
- Preserves Credit Lines
- Fixed Payments
- Longer Terms
- No Down Payments
- No Additional Collateral
- Easier Budgeting
- No Fees
|
- Reduces Available Credit Lines
- Requires Extensive Documentation
- Extensive Monthly Reporting
- Often Requires Additional Collateral
- Often Requires Down Payment
- Not Flexible
- Negative Impact on Balance Sheet
- Bank Loans Can Be Cancelled At Any Time
|
- Fees
- Disregards time value of money
- Depletes Cash Reserves
- Negative Impact on Balance Sheet
- Reduces Cash Asset Position
|