Equipment Financing - Leases vs. Loans
What is Equipment Leasing?
Equipment leasing empowers you to access the machinery or equipment you need without the burden of large upfront costs. This financial arrangement allows you to make regular lease payments over a specified period, providing you with the latest equipment to keep your business competitive. At the end of the lease term, you have the flexible option to purchase the equipment for as little as $1, making it an affordable path to ownership. This approach helps you preserve capital, manage cash flow, and invest in other areas of your business growth.
Understand the Process
Discover how easy business equipment leasing can be. From selecting the right machinery to understanding your end-of-term options, our guide walks you through every step.
Benefits of Equipment Leasing
Keep Upfront Costs Low
Keep Upfront Costs Low
Keep Upfront Costs Low
Leasing requires significantly less initial capital than buying and allows you to spread out sales tax payments over the lease term, enhancing your financial flexibility.
Maximize Tax Savings
Keep Upfront Costs Low
Keep Upfront Costs Low
Leasing equipment means fully tax-deductible payments, reducing your taxable income. Expense lease payments instead of depreciating equipment costs.
Get Approved Quickly
Keep Upfront Costs Low
Get Approved Quickly
Get an approval in less than 24 hours, so you can acquire the equipment you need without delay and start growing your business sooner.
Preserve Your Cash
Keep Upfront Costs Low
Get Approved Quickly
By spreading the cost over time, you can retain more working capital, leveraging your buying power to invest in other areas of business growth and opportunities.
What is an Equipment Loan?
An equipment loan provides your business with the necessary funds to purchase machinery or equipment outright. With this financial arrangement, you gain immediate ownership of the equipment while repaying the loan through fixed monthly installments over a specified period.
Choosing Between Equipment Loans and Leases
When deciding between an equipment loan and a lease, consider your business's needs and financial situation. An machinery loan is ideal if you prioritize immediate ownership, allowing unrestricted use of the equipment. However, loans require higher upfront costs, including the full payment of sales tax.
Equipment lease options, on the other hand, offer lower initial costs and the option to own the equipment at the end of the term. With leases, the entire monthly payment is tax-deductible, allowing you to write off both principal and interest, unlike equipment loans, which only allow for interest and depreciation deductions.
To understand which product best fits your business needs, contact us. Our equipment finance experts will help you determine the most suitable option tailored to your unique needs and goals.