Equipment Leasing

Why Use an Equipment Leasing?

Approval Amount: Up to 100% of Equipment Value

Repayment Structure: Monthly

Term Length: 24-84 Months

Time to Funding: 2-5 Days



Pros: 

  • Equipment Serves as Collateral
  • Simple Approval Process
  • Soft Costs Such as Shipping/Installation Can Be Financed
  • Available for Start-Up Businesses
  • Payments are Tax Deductible
  • Typically only 1st/Last Payment Due in Advance Instead of a 10%-20% Down Payment.

Cons: 

  • Interest Rates Depend on Credit and Time in Business




Equipment Leasing is when a bank or lender pays your vendor or private party seller for new or used equipment for your business and leases it to you. You make a the lease payments and at the end of the term, have the option to purchase the equipment. End of term purchase options can vary from FMV (fair market value) to $1 or a percentage of the initial lease amount. 


You can lease all types of equipment including computers, machinery, vehicles and much more.  


Leasing v. Financing Equipment 

Both are tax deductible but in different ways. Typically you can write of the entire lease payment since the bank owns the equipment and it is simply another business expense. The advantage to financing the equipment is that you can write off the entire value of the equipment (up to $500k) in one calendar year with section 179. 


*Consult with your tax professional about which one best suits your business needs. 


Compare and shop equipment leasing