Capital Lease
A lease structured similarly to a purchase, where the business effectively takes on the risks and benefits of ownership and records the equipment as an asset on its books.
A capital lease (also called a finance lease) typically transfers most of the economic characteristics of ownership to the lessee, often including an option to buy the equipment for a nominal amount at the end of the term.
Because it’s treated more like a purchase for accounting purposes, a capital lease appears differently on a business’s financial statements than an operating lease, which can matter when a lender is evaluating those statements.
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.