Equipment Leasing

Commercial equipment leasing is a 200 billion dollar a year industry with at least 75 percent of companies leasing some or all of their equipment. There are many reasons why a company would choose to lease versus purchasing their equipment, with the most common being the following:

Less money down. A traditional business loan only lets a company borrow up to 75 percent of the equipment value. With most leases, you are typically only required to come up with the first and last payment.

Tax advantages. Leases allow for the payment to be expensed and kept off the balance sheet. The Financial Accounting Standards Board considers lease rental payments as an expense, not a debt, under many lease agreements.

Flexible terms. It's easier to be approved for a lease than a loan, and there is less documentation required. Leases under $75,000 only require an application in most cases.

Preserve working capital. Does not tie up working capital which enables you to use it to run your business.

Click here for types of equipment leases