An equipment lease is a contract where a lessor owns a piece of equipment, such as a commercial truck or heavy machinery, and a lessee may use that equipment in exchange for regular payments. The equipment is still owned by the lessor, but the lessee may claim their rental payments for tax purposes.
Equipment leases can be issued for a range of assets in nearly every industry. Equipment may include factory machinery, trucks, commercial vehicles, specialized equipment, and more. Equipment leases allow businesses to have important assets at their disposal, like commercial vehicles, without the expense and difficulty of purchasing the equipment outright.
Equipment leases are a great way to obtain assets without a large upfront investment, since typically no down payment is required. The monthly lease payments may be claimed on taxes. Equipment leases also protect the lessees from the risks of ownership and allows them to upgrade their equipment regularly, rather than being stuck with a purchased asset.