Equipment Leasing for Startups: What to Know

When you start a business, you have many things to address and significant expenses. Startups require funds to purchase supplies, products, property, marketing, and more. You must have a well-thought-out plan for covering your costs without operational working capital, as it will take a while to build your business. Equipment leasing offers a way to obtain necessary machinery, furniture, systems, and tools.

What Is an Equipment Lease?

Leasing is financing like renting. You make set payments to use the equipment for a fixed term instead of purchasing the items outright. This type of funding differs from taking out a loan to buy equipment. You do not own the things you lease. When you get to the contract’s end, you can renew your lease, return the equipment or, in some instances, purchase it.

What Are the Terms?

A lease gives you access to critical equipment quickly to start your business on the right foot. With this financing type, you will pay interest and fees. Your monthly fee typically includes these charges, and interest is usually a fixed rate. Depending on your agreement, the leasing company may charge additional maintenance, repairs, insurance, and tax fees. Although equipment leasing can be more expensive in the long run, purchasing equipment is not always the best choice for a new startup.

What Kind of Equipment Can You Lease?

You can lease a wide variety of items, including:

  • Construction tools and vehicles
  • Heavy machinery
  • Computers and software
  • Telephone systems
  • Office furniture
  • Printers, shredders, and other gear
  • Lighting
  • Manufacturing equipment
  • Delivery vehicles and trailers
  • Medical equipment

What Are the Benefits?

You must spend your money wisely when getting a startup off the ground. Leasing provides many advantages, such as:

  • Quick access to necessary equipment
  • No down payment
  • Less paperwork
  • Possible tax deductions
  • Ability to upgrade more often
  • Maintenance and repair options

What Qualifications Does My Business Need?

As a new business owner, securing a loan is much more challenging than getting a lease. The requirements for obtaining an equipment lease vary depending on the leasing company. Your credit score will be crucial because you likely do not have a business history the lender can review. The leasing agency will also consider the cost of the equipment and may review your business plan.

Equipment leasing ensures your company has the tools, gear, and systems to operate smoothly. With the right equipment, you can give your clients the best possible service, enabling you to grow your revenue and gain loyal customers.

Seek Expert Assistance

At Bluwav Capital, we work hard to ensure that our customers get the right loans for them. When you work with us, you are more than just an application number. We take the time to understand your business so that we can pair you with a tailored solution that will help you achieve your goals.


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