Financing Solutions · Leasing
Equipment Leasing Explained
Understand how commercial equipment leases can fit your business, what to compare, and which contract terms deserve attention.
Transaction range
$5,000 to $5,000,000 in eligible equipment financing
From essential purchases to substantial expansion projects, we discuss commercial equipment loans and leases within this range. Actual loan or lease amounts, repayment terms, rates and availability depend on the equipment, underwriting, documentation and funding program. This is not an offer or guarantee of financing.
Need business working capital?
Working capital supports operations, inventory and growth rather than a particular equipment asset. Explore available funding paths and important differences from equipment leasing.
Explore Working Capital →Leasing fundamentals
Lease terms matter as much as the monthly payment.
Commercial equipment leasing can offer businesses a way to use equipment while making payments over an agreed period. The lease agreement—not a sales description—determines purchase options, maintenance obligations, insurance responsibilities, renewal provisions and end-of-term requirements.
A lease may be worth exploring when keeping cash available, planning for equipment replacement or managing a particular asset's useful life are important business considerations.
We discuss the transaction first, then review potential structures and the tradeoffs that matter to your operation.
Compare the options
Questions to ask before signing
Who owns the asset?
Some arrangements provide a purchase option; others are designed for equipment return or renewal. Read the precise end-of-term language.
What is the total obligation?
Consider all scheduled payments, fees, buyout amounts, maintenance and insurance rather than evaluating only the advertised payment.
How long will you use it?
Match the expected useful life of the equipment and technology-refresh plans to the proposed financing term.
Lease versus loan
Understand the differences before deciding
There is no universal best choice. The appropriate structure depends on contract details, business objectives, and professional accounting and tax advice.
Equipment Loan
- Typically tied to an equipment purchase.
- Ownership and security interests are defined in the loan documentation.
- Payments and maturity are specified in the agreement.
- Borrower generally remains responsible for maintenance and insurance.
Equipment Lease
- Use of equipment is governed by a lease contract.
- Ownership and purchase rights vary by structure.
- End-of-term obligations require close attention.
- Potential accounting and tax treatment depends on facts and applicable standards.
Common questions
Equipment leasing FAQs
Can I purchase equipment at the end of a lease?
Some leases provide a purchase option, while others have different end-of-term provisions. Check the actual contract.
Does leasing guarantee a tax benefit?
No. Tax treatment depends on the lease and the business; discuss the specifics with a qualified tax professional.
What happens if we want to upgrade early?
Early changes may trigger obligations or fees. Request the contract’s early termination and upgrade terms before agreeing.
Can used equipment be leased?
Some qualifying used equipment may be eligible, depending on provider guidelines and asset characteristics.