Types of Leases

If you are ready to purchase equipment but you’re afraid to take the plunge because you aren’t certain how to structure the lease, well then look no further.

Deciding what type of lease will fit your business depends on several factors. The most important questions to ask yourself are these:

• Do I want to keep or return the equipment at the end of term?
• Does my business need depreciation for tax purposes?
• How long would I like to finance this equipment for?
• Can my business handle a large monthly payment?
• Are my business debt ratios too high for conventional financing?
• Am I prepared to make a large balloon payment at the end of the lease?

Depending on how you answered those questions will determine whether or not you should choose the following lease types:

• Capital Lease

• Operating Lease

• Trac Lease

• Synthetic Lease

• Net Lease