Equipment Leasing
An arrangement where a business pays to use equipment over a set term without purchasing it outright, often with an option to buy at the end.
Leasing typically requires less upfront cash than purchasing equipment outright or financing a purchase, and lease payments may be structured as an operating expense rather than a capitalized asset, depending on how the lease is classified.
At the end of a lease term, options often include returning the equipment, renewing the lease, or purchasing it at a predetermined price, commonly either fair market value or a nominal amount depending on the lease type.
Related Terms
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.