Lease Financing: An Alternative to a Small Business Loan

Leasing equipment for your small business needs is a great alternative to using a small business loan to get the money to buy it. It also benefits your small business credit by saving it for other needs where you will have the need to borrow for cash purchases.

The lessor retains ownership of the equipment, but you have the right to use it for your small business in exchange for the monthly payments you are under obligation to make. Each lease will have specific terms, but in general your small business can trade the equipment if it fails, or switch it for a better model. The lease payment can be used as a tax deduction for the small business; yet it can be reported on your balance sheet as a footnote. This denotes that it is not included in your total debt burden. When you apply for a small business loan, the lender will note the lease but it will not be considered as using any portion of financing you are eligible to receive. Please contact us for more information about lease financing and small business loans.