Finance Large Equipment Purchases With An Equipment Lease, Pay For Them Over Time, And Either Purchase Or Turn In The Equipment At The End Of The Lease Term.


Finance Large Purchases With An Equipment Lease And Preserve Cash & Credit

What Is A Business Equipment Lease?

A Business Equipment Lease is a type of financing in which a lender purchases a piece of equipment on behalf of a business and then "rents" it back to the business at a pre-determined monthly rate for a set period of time. At the end of the lease term, there are generally options that will allow the business to purchase the equipment for fair market value or some pre-determined amount, or turn the equipment back into the leasing company.

Because a lease is not a business loan, no collateral is required and there is no debt on the books which leave the business' credit lines clean to pursue other forms of financing.

Types of Equipment Leases

In addition to an Equipment Sale Leaseback which is a type of equipment lease that allows a business to unlock the value of equipment it already owns, there are three type of leases that allow for the acquisition of new business equipment including:

  • Operating Lease

    An operating lease is best when only short term use of the equipment is planned. The operating lease allows the business to pay to use a piece of equipment for a short term and then, at the end of the lease term, the equipment is turned back in to the leasing company. An operating lease is a good solution if the business plans to replace the equipment at the end of the lease period or sooner.

  • True Tax Lease

    A true tax lease is best for equipment the business plans to utilize for the entire lease term. The true tax lease will have an option at the end of the lease term for the business to either return the equipment to the lessor or purchase the equipment for its fair market value. While this typically costs more than if the equipment was purchased outright, it allows the business to both preserve cash and credit, and delay the purchase decision until the end of the lease term.

  • Finance Lease

    A finance lease is best for equipment the business plans on using for an extended period of time and does not become obsolete or outdated very quickly. A finance lease will have the equipment fully paid for by the end of the lease term, at which point the business assumes full ownership of the asset from the leasing company.

CyoGate offers numerous business equipment leasing options and can help you determine which are best for your situation.


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"CyoGate Offers Numerous Business Leasing Programs To Help You Fund The Acquisition Of New Business Equipment And Provide Flexible Payment Options To Your Customers."

Benefits of a Business Equipment Lease

Preserve Cash & Credit Lines With Flexible Buy-Out Options

A Business Equipment Lease is an effective strategy to purchase large assets and has numerous benefits including:

  • Avoid Large Down Payments & Delay Purchase Decisions
    Business Equipment Leasing allows companies to make large asset acquisitions without having to pay huge up-front costs saving he cash reserves to be available for other expenses. It also allows the business to postpone the purchase decision until the end of the lease period and, if a short-term lease, the company can evaluate the equipment while using it in the businesss before making a decision to purchase it.

  • Easy Old Equipment Disposal & Upgrade Path
    A business equipment lease makes it easy to dispose of old outdated equipment and replace it with more current technology, making it an ideal way to finance things like computers and other equipment that has a relatively short life cycle. The business can use the asset for the lease period, then simply return it to the leasing company and replace it with a newer model.

  • Preserves Credit & Possible Tax Advantages
    Because the lease is not a loan, there is no negative impace on the balance sheet which leaves the business' credit lines free to be used for other forms of financing. Additionally, it's possible to deduct the payments on a business equipment lease assuming the leased asset was used in the business; however, you will likely also lose the benefits of depreciation, so you should speak to your accountant to fully understand the financial impact of an equipment lease.

For more information on CyoGate's Business Equipment Leasing options, please contact us today!



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