Knowledge Center
Equipment Financing & Leasing Guides
Everything you need to make smart financing decisions — from understanding lease structures to maximizing cash flow. Real answers from 30+ years in the business.
Financing Guides
Straight-talking answers to the questions every business owner should ask before financing equipment.
Benefits of Equipment Financing
Why financing equipment instead of paying cash preserves working capital, protects credit lines, and lets your equipment pay for itself through the revenue it generates.
- Preserve cash for operations and opportunities
- 100% financing — no large down payment required
- Fixed monthly payments make budgeting predictable
- Equipment pays for itself through increased revenue
- Potential tax advantages under Section 179
Leasing vs. Purchasing Equipment
A straight-talking comparison of leasing, financing, and outright purchase — when each makes sense, and why most growing businesses choose financing over cash.
- FMV Lease: lower payments, upgrade at end of term
- $1 Buyout Lease: own it at the end for $1
- Equipment Loan: traditional financing, you own it
- Cash purchase: highest upfront cost, ties up capital
- Operating lease: off-balance-sheet treatment
Cash Flow & Equipment Financing
Cash is king — but cash flow rules. Learn how strategic equipment financing keeps cash in your business while still getting the equipment you need to grow.
- Match payment schedule to equipment revenue cycle
- Seasonal payment structures available
- Deferred first payment options
- Step-up payments as revenue grows
- Keep credit lines open for emergencies
How Commercial Equipment Financing Works
A step-by-step walkthrough of the commercial financing process — from application to funding — so you know exactly what to expect and how to prepare.
- Application: 1-2 pages, 24-hour decisions
- Approval: credit review, equipment valuation
- Documentation: minimal compared to bank loans
- Funding: typically 3-5 business days
- Terms: 12 to 84 months, $5K to $25M+
Section 179 & Bonus Depreciation
How Section 179 and bonus depreciation rules can let you deduct the full cost of financed equipment in the year you place it in service — turning a tax liability into an asset.
- Deduct up to $1.16M in equipment costs (2024)
- Applies to financed and leased equipment
- Bonus depreciation: 60% in 2024
- Consult your CPA for your specific situation
- Both new and used equipment may qualify
What Lenders Look For
Understand the key factors that drive approval decisions — time in business, credit profile, equipment type, and how LeaseSource works with businesses that banks turn away.
- Time in business: 2+ years preferred, startups considered
- Credit score: 650+ ideal, lower scores reviewed case-by-case
- Equipment type: collateral value matters
- Cash flow: ability to service the debt
- We work with startups, nonprofits, and challenged credit
Ready to Apply? Start with Our Quick App
Our one-page Quick Application takes less than 5 minutes. No obligation, no hard pull on your credit until you're ready to proceed.
Common Questions
Straight answers to what business owners ask us most.
Ready to Put Your Equipment to Work?
24-hour decisions. $5K–$25M+. Every industry. One call.