Equipment leasing. Everything You Need to Know about it

equipment leasing

Equipment leasing is a great way to purchase equipment and manage it efficiently. However, if you’re looking to get into the business without the Big Price Tag, you may want to look elsewhere. The big equipment leasing companies can get pretty expensive. Instead, check out the small equipment leasing companies that operate in your niche. The smaller businesses can often offer better value, and they can often accommodate small business owners and contractors who can’t afford the big leasing companies. So, are you ready to learn everything you want to know about equipment leasing? Let’s take a look at everything you need to know about leasing equipment.

Decide If You’re a Small Business or a Big Company

Before leasing any equipment, you’ll want to make sure you’re aware of the type of lease you need. The Federal Trade Commission explains the difference between standard and special equipment leases. “Standard equipment leasing is often referred to as a straight-line lease. In this type of lease, the equipment is essentially given to the lessor and you pay only for its use. The lessor then subleases the equipment to another party.”

“Special equipment leasing is often referred to as a point-of-use lease. In a point-of-use lease, the equipment is typically only used by one party. The lessor then leases the equipment to a third party.”

Why equipment leasing is better than unseasonable equipment

When you lease equipment, you’re essentially giving up ownership. However, the downside of this is that the equipment doesn’t get old, gets repaired, and then needs to be replaced. In an unseasonable situation, you have no control over when and how long the equipment will last. Furthermore, unseasonable equipment may not be repairable in the first place, so it may not be worth the effort to find a new user.

On the other hand, leased equipment comes with a contractual obligation to keep the equipment in good working order. If the equipment doesn’t meet the standards necessary to operate, a customer can request that the equipment be returned. In many cases, the lessor is required to pay for the return of the equipment.

You Need to Lease Equipment to Grow Your Business

Leasing may make sense for larger businesses that want to expand their operation and want to avoid the Big Price Tag. However, you should only consider equipment leasing when you’re looking to grow your business and expand your reach without having to invest a lot of money into your expansion. In these cases, the extra cost of equipment  leasing may be worth it to you in the long run.

If you’re interested in expanding your business across state lines, federal lines, or internationally, you may want to look into other options such as purchasing the equipment outright.

Equipment Leasing Offers Different Types of leases

There are many different types of leases. Here are just a few of the most common:

Fixed-term: A fixed-term equipment lease is the most common type of lease. The term of the equipment lease lasts for the length of time the equipment is used.

Amortization-free: These are sometimes referred to as no-amortization leases. The lessor owns the equipment during the term of the lease, but pays you off over time.

Sale-ready: These are often referred to as go-to-work or hands-off leases.


Leasing equipment can be a great way to expand your business or get a quick start on your project. However, you’ll have to research different leasing companies and their different types of leases to make sure you’re getting the best deal. In some cases, you may even want to lease your equipment instead of buying it. Whatever you do, don’t just lease equipment without doing your research. Don’t make a rash decision based on emotion or the fact that you have lots of experience in this field. Leasing can be a great way to acquire equipment, but only you can decide if it’s the right move for your business.

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