Pricing and Comparison
How equipment lease payments are built, what moves them, and how the main structures compare.
commercial equipment leasing
Commercial equipment leasing, explained before you sign
Compare lease structures, estimate payments and learn what lessors ask for, so you can finance machinery, vehicles and technology without surprises.
- Estimate payments and total cost
- Compare FMV, $1 buyout and loans
- Spot red flags before you sign
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Applying and Process
Step-by-step help with applications, documents, choosing a lessor and understanding timelines.
Mistakes and FAQ
Common errors, red flags, end-of-lease choices and straight answers to frequent questions.
Start here
Applying and Process
How to Lease Business Equipment: Step-by-Step Application Guide
Follow the full process of leasing commercial equipment, from choosing the machine and getting quotes to credit review, documents, delivery and acceptance.
Mistakes and FAQ
Equipment Lease Red Flags and Scams: What to Watch For
Learn the warning signs of equipment leasing scams and predatory terms, including upfront fees, pressure tactics and bad contract clauses, and what to do about them.
Pricing and Comparison
How Much Does Commercial Equipment Leasing Cost? 2026 Price Guide
Learn how commercial equipment lease payments are built, what total cost includes, and how to estimate your own monthly payment with worked examples.
Mistakes and FAQ
12 Common Equipment Leasing Mistakes and How to Avoid Them
The most expensive mistakes businesses make when leasing equipment, from focusing on monthly payment to missing renewal notices, with practical fixes for each.
Pricing and Comparison
FMV Lease vs $1 Buyout Lease: Which Equipment Lease Fits Your Business?
Compare fair market value leases, $1 buyout leases and 10 percent purchase options on payments, ownership, taxes and end-of-term risk, with a worked example.
Pricing and Comparison
Lease vs Loan vs Buying Equipment With Cash: How to Decide
A practical framework for comparing equipment leases, equipment loans and cash purchases, with a worked three-way cost comparison and decision criteria.
Tools
Equipment Lease Payment Calculator
Estimate the monthly payment, total interest cost and total paid on a fully amortizing equipment lease or finance agreement.
Equipment Payback and ROI Calculator
Test how quickly new equipment earns back its net cost through added revenue or savings.
Equipment Lease Pre-Application Checklist
A checklist of business, credit, equipment and document items to prepare before you request lease quotes.
Equipment Financing Options Compared
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Fair market value (FMV) lease | Lower payments based on the equipment's expected value at the end; at the end you return it, renew or buy at fair market value. | Technology and equipment that loses value or becomes outdated quickly. | Purchase price at the end is not fixed; return conditions and renewal clauses can be costly. |
| $1 buyout lease | Payments cover nearly the full cost; you buy the equipment for $1 (or a nominal sum) at the end. | Equipment you plan to keep for its full useful life. | Higher payments than FMV; you are responsible for the asset as an owner in most respects. |
| 10% purchase option lease | Fixed purchase option, often a stated percentage of original cost, at the end of the term. | Buyers who want a middle path between FMV and a $1 buyout. | The percentage may exceed real market value; confirm exactly how the option is defined. |
| Equipment finance agreement (loan) | Lender finances the purchase and takes a security interest; you own the equipment from day one. | Businesses that want ownership, depreciation and a clear payoff. | Down payment may be required; the whole price is borrowed against your credit. |
Frequently asked questions
What credit score do I need for commercial equipment leasing?
There is no single national cutoff. Many lessors look for a personal score in the mid-600s or higher for standard pricing, while some programs work with lower scores at higher cost or with a larger down payment. Time in business, cash flow and the type of equipment also matter.
Is equipment leasing the same as a loan?
Not exactly. In a true lease the lessor owns the equipment and you pay for its use; in a loan you own it and the lender holds a security interest. Some leases, such as $1 buyout leases, behave much like loans, and the label should not stop you from comparing total cost.
Can I deduct equipment lease payments?
Often yes as a business expense, but the treatment depends on how the agreement is structured. Some leases are treated as purchases for tax purposes, which can allow Section 179 or depreciation instead. Ask your CPA to review the contract before you sign.
How long does it take to get approved?
Small deals through online lessors can be approved within a day or two, while larger transactions with financial statements can take a week or more. Delivery and acceptance paperwork add time before funding.
What happens at the end of the lease?
That depends on the contract. You may return the equipment, renew, upgrade or buy it, and with an FMV lease the purchase price is based on market value at that time. Read the return, notice and renewal clauses carefully.
Can a startup lease equipment?
Yes, though options are narrower. Lessors may ask for a larger down payment, personal guarantees or additional collateral. Used equipment with strong resale value and vendor programs can make approval easier.
Who pays for maintenance and insurance?
Most commercial equipment leases are triple-net style, meaning the lessee pays for maintenance, insurance and taxes. The lessor typically requires proof of insurance naming it as loss payee.
Can I end a lease early?
Usually only by paying the remaining balance or a negotiated settlement. Most commercial leases are non-cancelable, so confirm early termination terms before signing.
How this site is made
Dockside Lease Desk is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.