What is Equipment Leasing?

For small businesses needing specialized equipment, leasing can be an ideal solution to maintain cash flow and ensure smooth operations.

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What’s the Difference Between
Equipment Leasing and Equipment
Financing?

Equipment leasing lets you use the equipment without owning it, giving you the option at the end of the lease term to purchase, return, or continue leasing the asset.

In contrast, equipment financing allows you to own the equipment outright after completing a set term. LNS offers flexible financing options so you can choose the program and terms that best fit your budget and cash flow needs.

Operating Lease

Similar to a car lease, an operating lease allows you to use equipment without owning it, with the option to buy or return it at the end of the term. This structure is appealing to business owners who want lower monthly payments compared to financing.
Additionally,
an operating lease may not appear on your balance sheet, potentially providing certain financial advantages

Equipment Finance Agreement (EFA)

An Equipment Finance Agreement (EFA) functions much like a loan, with higher payments than an operating lease, but you gain ownership of the equipment once the term is complete.
This is ideal if you’re set on owning the asset. There’s also a related option known as a capital lease, which offers a bargain purchase option at the end, such as $1 or $101. A capital lease may have specific tax advantages compared to an EFA, so it’s wise to consult with your CPA to determine the best choice for your business.