Why Finance vs. Buy?

We can help you make an informed decision when it comes to buying or financing your commercial equipment.

If you can generate more net income by borrowing equipment than you can owning it, consider financing.

There are times when you only need equipment for a short period of time, and it could actually cost you more to buy it than it would to finance. When considering financing, it is important to consider the anticipated length of use and the total cost of the financing versus the total cost of purchasing the equipment. Depreciation benefits should also be considered.

​Benefits of Financing

Equipment financing can help your business in a number of ways, including:

​Conservation of Cash Flow

Tax-oriented lease payments are smaller than those associated with traditional term loan financing, increasing a company’s cash flow.

​No Down Payment

Companies can avoid down payments, which may be required under traditional financing methods.

​Balance Sheet Considerations

By leasing rather than buying, companies reduce balance sheet debt, can potentially improve financial ratios, and preserve borrowing capacity.

​Tax Benefits

Some companies, such as those that are capital intensive or subject to Alternative Minimum Tax (AMT) or mid-quarter convention, are unable to optimize tax benefits from owning equipment. Companies can utilize tax-oriented leases to transfer the tax benefits of equipment ownership to M&T in exchange for lower rental payments.


M&T Bank offers structuring flexibility in lease terms and extensions, early termination options and payment schedules.

​Keeping Pace with Technology

Lease terms can be set to match the useful life of equipment that otherwise can quickly become obsolete.

The content of this page is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.