Equipment leasing is basically a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment or return the equipment. Any business at any stage of development is a candidate for equipment leasing. For start-up businesses with no revenues, "small ticket" leases, those of $150,000 or less, are feasible on the personal credit of the founders or owners; if they are willing to make the monthly payments

• Leasing can also finance the soft costs often associated with equipment purchases, such as installation and training services.
• Leasing provides 100% financing, conserving cash and preserving lines of credit for working capital purposes
• Leasing provides a close matching of the lease term and payments to the revenue produced from employing the equipment.

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