Checklist Leasing vs Purchasing

Company Letterhead Block

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date & Reference

Date: {{date}}

Reference: {{reference_number}}

Asset Details

Asset Name: {{asset_name}}

Asset Description: {{asset_description}}

Estimated Purchase Price: {{estimated_purchase_price}}

Expected Useful Life: {{expected_useful_life}} years

Leasing Considerations

1. Monthly/Quarterly Lease Payment: {{lease_payment}}

2. Lease Term: {{lease_term}} months/years

3. Total Cost of Lease (Payments + Fees): {{total_lease_cost}}

4. Upfront Costs (e.g., security deposit, first payment): {{lease_upfront_costs}}

5. Maintenance & Repair Responsibility: {{lease_maintenance_responsibility}}

6. Option to Purchase at End of Lease: Yes/No. Purchase Price: {{lease_purchase_option_price}}

7. Flexibility/Upgrade Options: {{lease_flexibility_options}}

8. Tax Implications of Leasing: {{lease_tax_implications}} (e.g., operating expense, off-balance sheet)

Purchasing Considerations

1. Purchase Price: {{purchase_price}}

2. Financing Options (Loan Interest Rate, Loan Term): {{loan_interest_rate}}, {{loan_term}} months/years

3. Monthly Loan Payment: {{loan_payment}}

4. Total Cost of Purchase (Price + Interest + Fees): {{total_purchase_cost}}

5. Upfront Costs (e.g., down payment, delivery fees): {{purchase_upfront_costs}}

6. Maintenance & Repair Responsibility: {{purchase_maintenance_responsibility}}

7. Asset Depreciation Schedule: {{asset_depreciation_schedule}}

8. Resale Value at End of Useful Life: {{estimated_resale_value}}

9. Tax Implications of Purchasing: {{purchase_tax_implications}} (e.g., depreciation deductions, asset on balance sheet)

Financial Analysis Summary

Net Present Value (NPV) of Leasing: {{npv_leasing}}

Net Present Value (NPV) of Purchasing: {{npv_purchasing}}

Internal Rate of Return (IRR) - Lease vs. Buy: {{irr_comparison}}

Cash Flow Impact (Initial, Monthly, Annual): {{cash_flow_impact}}

Strategic & Operational Factors

1. Business Growth & Flexibility Needs: {{business_growth_flexibility}}

2. Capital Availability & Budget Constraints: {{capital_availability}}

3. Technology Obsolescence Risk: {{technology_obsolescence_risk}}

4. Administrative Burden (e.g., financing paperwork, asset management): {{administrative_burden}}

5. Alignment with Long-Term Business Strategy: {{strategic_alignment}}

Recommendation & Justification

Based on the analysis, our recommendation is to: [ ] Lease / [ ] Purchase the asset.

Justification: {{justification_details}}

Approval

Approved By:

Name: {{approver_name}}

Title: {{approver_title}}

Date: {{approval_date}}

Signature Block

___________________________

{{preparer_name}}

{{preparer_title}}

{{date}}