Equipment leasing is an option that allows companies to acquire everything from restaurant equipment to corporate aircrafts without the initial outlay of cash.
The basic concept of leasing is the borrowing of equipment over time in exchange for money through a long-term capital investment (renting to own over a period of five to seven years) or a short-term operating lease (the option to purchase or return the asset at the end of the contract period).
There are many advantages to leasing equipment:
- Financing: The option to use equipment-leasing companies can allow startup and expanding companies to purchase or borrow new and used equipment without the initial cash output, often allowing 100 percent financing, where the loan method may require a deposit of up to 25 percent.
- Credit: In the current economic climate, cash flow can be tight and companies can find it difficult to obtain bank loans for equipment. According to the Equipment Leasing and Finance Association, credit standa
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