An equipment lease is a contract for the use of a specific
piece, (or multiple pieces of), equipment or furnishings
for a specific period of time and for specific lease
(rental) payments agreed upon in advance.
The lessor is the owner of the leased equipment and makes the initial cash investment for its purchase.
The lessee is the user of the equipment and gets all the benefits of its use, just as if they owned it. Leasing lets you finance the use, without having to finance the purchase.
What Kinds Of Businesses Lease Equipment?
All kinds and sizes of businesses; from the largest multinational companies and professional practices, to "mom 'n pop" businesses and individual proprietors; use equipment leasing as a way of acquiring the use of the tools or furnishings they need to be productive and profitable.
According to industry and government statistics, 80% of all businesses lease at least some of what they use. Any growing business can benefit from using equipment leasing.
It provides a practical way to stay abreast of the latest trends and use the newest, most productive equipment without draining valuable equity cash from the business or tying up important bank lines of credit. Tying up cash in fixed assets can severely restrict the ability to move quickly on other opportunities.