Important Details

Business Equipment Financing

Business Equipment Loans vs Business Equipment Leasing


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 Leasing

Important 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.)

  Compare Loans

Learn more about
available loans
Compare Leases

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?

Get Help Finding the Right Business Equipment Financing

For personalized local help in Utah and Idaho, visit our Business Resource Center or contact Zions Business Equipment Financing today at 888-281-3259.

1. Equipment lease financing is subject to credit approval. Certain criteria apply. See a specialist for details. Equipment lease financing is offered through Zions Credit Corporation, a subsidiary of Zions First National Bank.
2. Certain criteria apply.

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This page was last modified on Wed Nov 25 14:56:21 MST 2015