Commercial Equipment Lease and Financing

A general guide to help you understand the equipment lease and finance process.

By LaRita Heet, Freelance Writer, Journalist, IBT Designer, LMH Communications

Starting and growing a small business means more than finding a property and sticking an “Open” sign in the window; it also means buying or leasing equipment for your business. A commercial lease on capital equipment can be a lifesaver for startup and small businesses. Business equipment leasing can reduce your initial costs for acquisitions and can increase your cash flow. Equipment leasing is available via general leasing vendors and other companies, such as those offering computer leasing, specialized leasing or industry-specific equipment leasing. And with flexible lease financing terms, you can secure payment plans, upgrade options and buyout options that work for you.

Here are the top considerations for leasing equipment for your small business:

1. Business equipment leasing gives you immediate access to the capital equipment you need with payments to fit your budget.
2. Computer leasing is a great way to take advantage of the newest technology, while transferring ownership risk to the equipment-leasing vendor.
3. Specialized leasing vendors offer all types of capital equipment — from MRI machines to industrial machinery.

Determine the type of lease equipment you need

Business equipment leasing offers reasonable prices on a vast array of equipment for all kinds of businesses. Whether you need typical office furniture and equipment, industrial equipment, medical equipment or computer and IT equipment, equipment leasing is an option.
Try: Tiger Leasing offers equipment leasing for a wide variety of businesses and industries. Visit the Equipment Leasing and Finance Association (ELFA) to access more than 800 members of the ELFA for a multitude of business equipment leasing, leasing vendors and lease financing options.

Look for IT and computer leasing for high-tech, lower-cost solutions

Because computers become obsolete, so quickly, computer leasing is a smart way to stay on top of tech trends while saving money. Don't forget to check into software offered by many computer leasing vendors, too.
Try: IT and computer leasing solutions can be found at BizLeasing, RentaComputer.com or through the directory of Computer Leasing vendors at Business.com.

Get the best lease financing terms on your commercial lease agreement

Lease financing terms and rates vary and include operating leases and capital leases. With an operating lease, you return equipment at the end of the lease and have no option to buy. A capital lease typically gives you an option to buy at the end of the lease. Know which lease financing terms you want before signing a commercial lease agreement.
Try: Submit a quick form at AllOptions to receive and compare multiple commercial leasing rates at no cost or obligation to you. At the Proposal Portal, just input a few business facts and get the lowest commercial equipment lease rates for free. Check out Keystone Leasing for multiple lease equipment options, including rent to own, 100 percent financing or 100 percent tax-deductible plans.

Find specialized leasing equipment vendors to increase your profits

Whether you need medical, industrial, restaurant or some other type of equipment, you can find it through specialized leasing vendors.
Try: Industrial equipment leasing through Lease Source provides specialized leasing equipment for a variety of industries, and specific lease financing for companies in business for less than two years. USLeasing is a specialized leasing vendor specializing in medical equipment. For industrial equipment and machinery, try Access Equipment Leasing.

Take advantage of the best deals in low-cost end-of-leasing equipment options

Many companies offer end-of-lease equipment options that cost you as low as $1.00; while others may cost 10 percent of the item's price, fair market value, or another standard price. Check into these options before you sign the commercial lease agreement so you can plan accordingly.
Try: Ervin Leasing’s standard end-of-lease options include $1.00, 10 percent and fair market value equipment leasing buy-outs. Download a lease application here.