Glossary
What is Equipment Lease?
An equipment lease is an agreement that lets your business use equipment owned by a leasing company in exchange for regular payments over a set term. At the end of the lease, depending on the structure, you may return the equipment, renew the lease, or buy it at a fixed or fair market value price. Leasing often requires less money up front than buying and can make upgrading easier. Read lease terms carefully for maintenance, insurance and renewal provisions.
Example
A medical clinic leases imaging equipment for four years, planning to upgrade at the end of the term.
Related funding
Equipment Financing: The equipment itself secures the financing.
Related terms
EIN (Employer Identification Number)Factor RateFair Market Value LeaseAll terms
Questions about an offer? Your advisor will explain every term.