Comparison between Bank Loan and Leasing

Bank Loan Leasing
1. Cheaper source of finance Expensive source of finance
2. Collateral security is involved Collateral security is not involved
3. Good is actually sold Good remains in the owner ship of the seller
4. In case of payment defaults bank can not I case of payment defaults seller can repossess
repossess the good the good
5. Suitable for goods with no second hand Suitable for goods with good second hand value