Finance companies prefer to outwardly purchase equipment and then lease it to a business rather than finance the purchase because they receive part of the lease payment in the form of a down payment from the purchaser.

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Finance companies may prefer to lease equipment to businesses because leasing can offer a steady stream of income over time and may offer tax benefits. However, the preference to lease rather than finance a purchase is not primarily because they receive part of the lease payment as a down payment; rather, it's due to factors like risk management, asset depreciation, and potential tax advantages.

Finance Companies Prefer to Outwardly Purchase Equipment and Then Lease