To buy needed equipment for your business, you have two business equipment financing options: to take out a business equipment loan1 or business equipment leasing. Both have advantages and disadvantages. Whichever approach you choose, Zions Bank has an available option to help you buy or lease business equipment.
Buying or LeasingImportant Details
|Business Equipment Loan||Business Equipment Leasing|
|Down Payment||Typically 20%||Little or no down payment|
|Financing||Up to 80% after down payment||Up to 100% with little or no down|
|Monthly Payments||Standard monthly payments typical of a loan||May be lower than monthly loan payments|
|On Company Balance Sheet||Yes||No, with specific leases|
|Tax Savings2||Cost may be deductible in the first year only and up to a limit determined by the IRS
Depreciation may be tax deductible
Payment, depreciation and even interest may be tax deductible depending on the type of lease
May lower your taxable income
|Interest Savings||—||May offer a lower after-tax cost of ownership|
|Options at Term’s End||You own the equipment, you keep it||Return equipment and avoid obsolescence
Purchase equipment (possibly at a predetermined price)
Continue leasing the equipment
(Available options depend on type of lease.)
Learn more about
Learn more about
leasing with Zions
When deciding whether to lease or buy, asking the right questions can help.
- How much do I plan to invest in equipment over the next 12 months?
- How do I plan to pay for the equipment?
- Do I know my lowest after-tax cost of use/ownership?
- Would I benefit from a prequalified Equipment Financing Line?
- Do I want/need to keep the equipment long-term?
- How quickly will the equipment become obsolete or wear out?