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Equipment Leasing Buyer's Guide - Introduction

Equipment Leasing Buyer's Guide - Introduction

Published: 04/18/2011

» Business Equipment
» Business Loans
»» Equipment Leasing



Equipment leasing has become an increasingly popular option for companies that need new equipment. In fact, according to the Equipment Leasing Association, as many as eight out of ten U.S. businesses choose to lease at least some of their equipment.



A lease lets you pass the buck – at least for a while. A third party funding source (the lessor) will purchase the equipment you want. As the lessee, you can use the equipment in exchange for regular payments made over a contracted period of time. Just like a bank loan, though, you need to have good credit and prove your ability to repay the lender.



This BuyerZone Equipment Leasing Buyer’s Guide will help you understand why and how to set up a lease and what to look for when shopping for a lease.




Table of contents



Why lease?



Types of leases



Evaluating leasing providers



Choosing a lease



Leasing tips





Pricing guidelines



Actual costs for equipment leasing will vary tremendously depending on your business’ creditworthiness, lease size, and location. Here are some very rough estimates.




Type of Lease




Estimated leasing rate


Small ticket lease


$100,000 or less


10% to 19%



Mid‐to‐large ticket lease


$100,000 or more


6% to 8%



Broker fee (if applicable)


Amount above the rate provided by funding source


3% to 5%