Equipment Leasing

An easy explanation of equipment leasing (by equipment leasing companies) is that it’s a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (or predetermined amount), continue the lease, lease new equipment or return the equipment at the end of the lease.

Who Should Consider Equipment Leasing?

Any business that needs equipment should at least look at leasing. Even start ups may qualify for small ticket leases (under 100k) based on the credit score of the business owner.  Leasing makes for nice way to acquire needed equipment with good flexible terms and some tax advantages.

Equipment leasing has become the leading way to acquire equipment used by businesses.  This has filled the market with leasing companies that compete to purchase equipment and lease it to business units. With more and more money flowing into the markets, leasing companies are flush with capital and eager to add additional leases to the portfolio. As a result, they are more likely to do business and respond to competition with lower monthly rates. 

Best Uses for Equipment Leasing

Financing equipment purchases such as manufacturing machinery, office equipment, material handling equipment, computers, software, tractors and trailers. 

Cost of Leasing

Equipment Lease financing is normally more expensive than bank financing, but it’s also much more easily obtained.

It’s an easy application for small ticket equipment leases of less than $100,000. An application for a small ticket lease is typically just a page or two and does not require much detailed reporting on the business. Equipment Leasing for more than $100,000 requires detailed financial information from the business so be prepared to have business financials and tax returns to apply and qualify. 


Just about any equipment a business needs could be an option for a lease. Often the company selling the equipment makes a direct referral to a leasing company with which it does equipment leasing business.  These leasing companies would most likely already know the equipment and be easier to work with over the long term.

As with all business financing you always need to get more than one equipment leasing quote.  It’s imperative to make sure you’re getting a competitive fair deal.  This is also a business in which you are not wasting your time working with a broker.  Equipment leasing brokers can often get you multiple leasing quotes from several leasing companies with one application saving you time and money.

Businessfinanceapp.com works with hundreds of leasing companies and some leasing brokers.  If your ready for some equipment leasing quotes, simply complete the loan quote application on the right side of this page.

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