Investing in Equipment: Lease or Loan?

Purchasing equipment is a major investment for any business. From specialized machinery to commercial vehicles, costs can add up quickly—making it tough to fund with cash alone. That’s where equipment financing comes in. Whether you're in agriculture, construction, or transportation, smart financing can ease the financial burden and keep your operations moving.

Understanding Your Options
When financing equipment, businesses often ask: Should I lease or take out a loan? Each option has pros and cons depending on your cash flow, tax strategy, and long-term goals.

Leasing Equipment
Leasing allows you to acquire equipment with little to no upfront cost. It's essentially a rental agreement, often with the option to purchase or return the equipment at the end of the term. Leasing is ideal for businesses with limited capital or for equipment that may become outdated quickly. However, since you're not building equity, leasing can be more expensive over time—especially if you need the equipment long-term.

Financing with a Loan
An equipment loan gives you full ownership of the asset. While loans often require a down payment, they result in lower total costs over time and allow you to build equity. Once the loan is paid off, there are no more monthly payments—just an asset that adds value to your business.

What Can You Finance?
No matter the industry, equipment loans can support large, essential purchases. Some commonly financed items include:

• Farm Equipment – Tractors, harvesters, irrigation systems

• Construction Machinery – Excavators, skid steers, bulldozers

• Turf & Lawn Equipment – Mowers, aerators, landscape trailers

With the right financing partner, you can invest confidently in the tools your business needs to thrive.