Equipment Financing
Equipment Financing vs Leasing
Financing means you own the asset and repay a loan secured by it. Leasing means you pay for use, often with a lower upfront cost and an option to upgrade or buy at the end. Finance long-life assets you intend to keep; lease assets that turn over or go obsolete quickly.
How they compare
| Ownership | Finance: yes · Lease: at end, optional |
| Upfront cost | Typically lower for a lease |
| Best for | Finance: long-life assets · Lease: fast-turnover assets |
| Collateral | The equipment secures the financing |
A quick decision rule
- Will you still be using it in five years? Finance it.
- Will technology change it out in two? Lease it.
- Is cash tight? Lease or finance with little down.
Frequently asked questions
New and used equipment?
Both can be financed; terms vary with age and condition.
Does the equipment secure the loan?
Typically yes, which can ease approval.