Lower payments now. Options at the end.
An equipment lease trades day-one ownership for a smaller monthly payment and a choice at the end of the term: buy the equipment for a set amount, upgrade to newer technology, or hand it back. It is the structure of choice when cash flow and flexibility matter more than holding title.
Illustrative payments on $75,000 of equipment over 48 months at a representative rate. Estimates only, not an offer — actual payments depend on the equipment, structure, and approval.
The buyout sets the payment.
In a lease, the funder owns the equipment during the term and you pay for the use of it. Because a residual value is left at the end, the monthly payment is lower than a comparable loan. The buyout you choose up front determines how much is left:
A $1 buyout works like financing in slow motion — you pay the equipment down to a dollar and own it automatically. A 10% option lowers the payment further, with a known, fixed buyout at the end. A fair market value (FMV) lease carries the lowest payment of all, and at the end you choose: buy at market value, extend, upgrade, or return.
Leases shine on technology that ages — imaging systems, IT, software-heavy machines — where the smart move in four years may be the next generation, not the machine you have. Lease payments may also be treated as an operating expense, which some businesses prefer; your tax advisor can confirm what fits.
Three ways out, all of them good.
Buy the equipment
Exercise your buyout — $1, the 10% option, or fair market value — and the title transfers to you. Most $1 and 10% lessees plan on this from day one.
Upgrade to newer
Roll into a new lease on current-generation equipment. This is the play for technology that improves faster than it wears out.
Return it
On an FMV lease you can simply hand the equipment back at the end of the term and owe nothing further on it.
Planning to run the equipment for a decade? If long-term ownership is the goal and payment size is less critical, straight equipment financing usually pencils out better.
Compare with Equipment Finance →Answers before you apply.
Which buyout should I choose?
If you know you will keep the equipment, a $1 buyout gives certainty; if you want a lower payment with a known purchase price, the 10% option splits the difference; if flexibility or the lowest payment is the priority, FMV wins. Your funding professional will run the numbers side by side with you.
How is a lease different from equipment financing?
With financing you own the equipment from day one and pay it to zero. With a lease, a residual is left at the end, which lowers the monthly payment and gives you a decision point — buy, upgrade, or return — when the term ends.
Can I lease used or refurbished equipment?
Yes. New and refurbished equipment are both leased regularly — refurbished imaging and machine tools are among the most common deals we see.
What happens if I want to upgrade mid-term?
On qualifying leases we can restructure — rolling the remaining balance into a new lease on newer equipment. It is one of the main reasons businesses choose the lease structure in the first place.
One application. Options that fit.
Apply once and we match you with a dedicated funding professional who manages your deal from application to funding.