Equipment Leasing & Financing: Get the Tools to Grow
Key Takeaways: Equipment Leasing & Financing
What is it? Funding specifically to acquire or lease essential business equipment, from vehicles and machinery to technology and furniture.
Leasing vs. Financing:Leasing is like renting – lower payments, easier upgrades, no ownership. Financing is like a loan – you make payments until you own the equipment.
Benefits: Preserves working capital, offers potential tax advantages (consult your advisor!), allows access to necessary tools for growth.
Collateral: The equipment itself typically serves as collateral, simplifying qualification.
Khojie Advantage: Fast approvals, flexible terms, and options for various credit profiles and equipment types (new and used).
Get the Tools You Need: Understanding Equipment Leasing & Financing
Need new computers, a company vehicle, heavy machinery, or specialized medical devices? Buying equipment outright can drain your cash reserves. Equipment Leasing and Financing offer smart alternatives to acquire essential tools without the hefty upfront cost. Instead of paying the full price upfront, you make regular payments over a set term.
This allows businesses to get the tools they need to operate efficiently, improve productivity, and stay competitive. Crucially, the equipment itself usually serves as collateral for the loan or lease, often making it easier to qualify for than other types of unsecured financing.
Financing vs. Leasing: Which is Right for You?
Choosing between financing (buying) and leasing (renting) depends on your business goals:
Equipment Financing (Loan)
Goal: Own the equipment outright.
Payments: Typically higher, builds equity.
End of Term: You own the asset.
Tax Benefit: May allow depreciation and Section 179 deductions.
Best For: Long-lasting equipment you intend to keep.
Equipment Leasing
Goal: Use the equipment for a set period.
Payments: Typically lower.
End of Term: Return equipment, renew lease, or potentially buy out.
Tax Benefit: Lease payments often fully tax-deductible as operating expenses.
Best For: Equipment that quickly becomes outdated (like tech) or short-term needs.
Khojie offers both financing and leasing options, helping you determine the most advantageous path for your specific situation.
What Kind of Equipment Can You Get?
Virtually any tangible asset needed for business operations can be leased or financed, including:
Technology: Computers, servers, software, POS systems
Because the equipment serves as collateral, qualification can be more accessible than unsecured loans. Key factors include:
Credit Score: While a good score (650+) helps secure the best rates, options exist for businesses with fair or developing credit, especially with Khojie's network.
Time in Business: Even startups can often qualify for equipment financing, unlike many traditional bank loans requiring 2+ years of history.
Revenue: Demonstrating sufficient cash flow to cover payments is key.
Equipment Type & Cost: The value and expected lifespan of the equipment play a role.
✅ Fast Track with Khojie: Our simple application and wide lender network mean you can get funding for needed equipment quickly, often much faster than traditional routes.
How to Apply for Equipment Financing or Leasing
Identify Equipment & Get Quote: Know the specific equipment you need and its cost.
Gather Basic Documents: Typically includes business information, personal details, and equipment quote. More extensive financials might be needed for larger amounts.
Apply Online with Khojie: Our quick application connects you to relevant lenders.
Review Offers: Compare terms, rates, and fees from different lenders.
Sign Agreement & Get Funded: Once approved, sign the documents, and the lender often pays the vendor directly.
Frequently Asked Questions
What's the difference between equipment financing and leasing?
Financing means you're taking a loan to buy the equipment, eventually owning it. Leasing is like renting; you use the equipment for a set term, often with lower payments, but don't own it at the end (though buyout options may exist).
Can I lease used equipment?
Yes, many lessors offer options for both new and used equipment, though terms might differ based on the equipment's age and condition.
What happens at the end of an equipment lease?
Common options include returning the equipment, renewing the lease (often at a lower rate), or purchasing the equipment for a predetermined price (like $1 buyout or Fair Market Value).
Are lease payments tax-deductible?
Often, yes. Operating lease payments are typically treated as a business expense and can be fully deducted. Capital leases have different tax implications. Always consult your tax advisor.
Ready to Get the Equipment You Need?
Get quick access to the equipment your business needs with Khojie's Equipment Leasing & Financing. Apply today or talk to a specialist to find the best fit.
