Friday, June 12, 2026New York · LondonSOFR 5.32Prime 8.50
Capital Desk · OpenVol. VII · No. 26
Equipment Financing vs Equipment Leasing.
Both options put equipment in your shop tomorrow without paying cash. The split comes down to whether you want to own the asset at the end, how fast it depreciates, and which line you want the payment to hit on your P&L.
| Dimension | Equipment Lease | Summit |
|---|---|---|
| Ownership at end | Return, renew, or buyout (10% / FMV / $1) | You own it from day one |
| Pricing | Implicit rate 6–18% depending on credit | 7–25% APR depending on credit + asset |
| Down payment | First + last payment, sometimes $0 | 10–20% typical, $0 down on strong files |
| Tax treatment | Operating expense deduction (lease pmts) | Section 179 / bonus depreciation on full asset |
| Best for | Fast-obsolescing tech, vehicles you'll replace | Long-life equipment (heavy machinery, commercial vehicles, manufacturing) |
| Approval speed | 24–72 hours | 24–72 hours |
Verdict
Long-life heavy equipment → finance and own it (you'll redeploy or sell the asset). Tech, vehicles, or anything you'll cycle out in 3 years → lease and let someone else carry the depreciation. Section 179 alone usually tips the math toward financing for any asset you'll keep 5+ years.