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What is the difference between equipment financing and equipment leasing?

Updated over a year ago

Equipment financing involves ownership from the start, where a business repays a loan covering most of the equipment cost, while equipment leasing means using equipment by paying regular lease fees without owning it. Ownership, payments, and end-of-term options vary between the two.

Financing leads to ownership, making it useful for long-term asset value. Leasing offers predictable payments and needs less upfront capital but lacks ownership. Tax implications differ, so consulting a professional is advised.

Choose between financing or leasing based on your business's needs, financial situation, and goals when acquiring essential equipment.

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