Compare Lease Types & Startup Requirements
Structure funding that meets your budget—not the other way around. Equipment leasing is a long-term unless you’re talking about short-term rental. Rental vs Equipment Lease. Preserve cash, fixed predictable payments, and keep options open at end-of-term. Don’t forget the tax advantages you receive while the equipment is generating revenue. Why use cash for a fixed asset when you can make low and fixed predictable monthly payments?
How Equipment Leasing Works
Leasing is a financing arrangement where your business rents equipment for a set term instead of buying it outright. You use the asset today—machinery, vehicles, technology, office equipment—while preserving working capital and spreading payments over time.
Types of Equipment Leases & Related Agreements
| Type | Best For | Description | Pros | Cons |
|---|---|---|---|---|
| Operating Lease (FMV) | Short-term use / fast-obsolete tech | Term shorter than useful life; lessor retains ownership; potential off-balance sheet (consult CPA). | Lower payments, upgrade flexibility, potential off-BS treatment. | Higher lifetime cost if you keep gear long term. |
| Finance / Capital Lease | Long-term users wanting ownership | Loan-like; fixed term; option to own at end (e.g., $1 or % buyout). | Ownership path, fixed payments, depreciation/interest deductions. | Higher monthly payments; shows as liability. |
| Sale–Leaseback | Unlocking cash from owned assets | Sell equipment to lessor, lease it back, keep using it. | Immediate cash, no operational disruption. | Ongoing fixed lease payments; no longer own the asset. |
| TRAC Lease | Commercial vehicles & fleets | Terminal Rental Adjustment Clause—flexible end-of-term options. | Lower payments; purchase/return flexibility. | Residual risk if market value drops. |
| Equipment Finance Agreement (EFA) | Retail-finance-like structure | Not a lease; non-cancellable; full-term liability similar to capital lease; similar tax treatment. | Straightforward ownership economics; depreciation benefits. | Full-term obligation regardless of early payoff. |
Want a deeper dive into structures and accounting? Ask us in your application or consult your CPA.
Credit Requirements for Startup Equipment Leasing
- Business bank account / active entity
- Personal guarantees from all owners
- Minimum 625 credit score
- No bankruptcies in the last 7 years
- No unresolved tax liens
Financing Options for Startups
- Equipment Financing — fixed terms; spread cost over time.
- Equipment Leasing — FMV/off-balance-sheet options for flexibility.
Business Funding & Lease Programs
| Program | Credit / Basics | Amount | Factor | Terms |
|---|---|---|---|---|
| Monthly Unsecured Finance Program* | 750+ credit • 3 yrs biz | $3,000 – $250,000 | 1.300 – 1.490 | 36 – 60 mths |
| Business Line of Credit Program* | 700+ credit | $3,000 – $250,000 | 1.080 – 1.209 | 6 – 18 mths |
| Business Line of Credit Program* | 650+ credit | $3,000 – $250,000 | 1.139 – 1.399 | 6 – 24 mths |
| Alternative Business Loan Program* | 700+ credit | $3,000 – $750,000 | 1.150 – 1.440 | 6 – 24 mths |
| Alternative Business Loan Program* | 650+ credit | $3,000 – $500,000 | 1.150 – 1.550 | 6 – 24 mths |
| Alternative Business Loan Program* | 600+ credit | $3,000 – $500,000 | 1.180 – 1.340 | 6 – 15 mths |
| Standard Merchant Advance* | 600+ credit | $3,000 – $5,000,000 | 1.310 – 1.420 | 6 – 12 mths |
| Merchant Cash Advance* | 550+ credit • 2nd open balance | $3,000 – $500,000 | 1.219 – 1.349 | 6 – 12 mths |
| Ultimate Chance MCA* | 500+ credit • 2nd open balance | $3,000 – $500,000 | 1.290 – 1.380 | 4 – 10 mths |
| Standard Equipment Financing* | 650+ FICO • 2+ yrs biz • 2 adv pmts • $1BO/EFA | $3,000 – $500,000 | 0.01925 – 0.03442 | 36 – 60 mths |
| Special Equipment Financing* | 700+ FICO • 5+ yrs biz • $1BO/EFA | $10,000 – $500,000 | 0.01909 – 0.0448 | 24 – 60 mths |
| Special Equipment Financing* | 650+ FICO • 3 yrs TIB • 1+1 adv pmts • $1BO | $5,000 – $250,000 | 0.02045 – 0.03641 | 36 – 60 mths |
| Structured Equipment Financing* | 550+ FICO • 1–3 yrs biz • 10–30% down • 10% FMV | $5,000 – $250,000 | 0.02466 – 0.03511 | 36 – 60 mths |
| Start Up Low Credit* | 600+ FICO • 10–30% down | $5,000 – $150,000 | 0.02174 – 0.03321 | 36 – 60 mths |
| Structured Equipment Financing* | 600+ FICO • $500K+ sales • 3+ yrs biz • 10% down | $5,000 – $750,000 | 0.02394 – 0.04004 | 36 – 60 mths |
| Low Credit Standard Program* | 550+ FICO • 3–5 yrs biz • 0–20% down | $3,000 – $1,000,000 | 0.02068 – 0.03508 | 36 – 60 mths |
| Healthcare Equipment Financing | Program dependent | $5,000 – $500,000 | 0.0198 – 0.04477 | 24 – 60 mths |
*Program availability and terms vary by credit, equipment, state, and time in business.
Equipment Lease for Commercial Trucks
Keeping your fleet current matters. Leasing amounts typically range from $5,000 to $3,000,000 with terms up to 84 months—spreading cost into predictable fixed payments and preserving working capital for hiring, marketing, and operations.
Advantages of Choosing Liberty Capital Group, Inc.
- Corp-Only Options — minimal impact on personal credit
- Up to 120% Coverage — finance soft costs too
- $250K–$5MM Capacity — app-only to $250K; financials to $5MM
- Next-day approval possibilities
- Approved vendor network & streamlined packaging
- Competitive industry rates
- No prepayment penalties (program-dependent)
- New and used equipment eligible
Preferred Leasing Vendors
Tap our experience in equipment vendor financing to help buyers of new or used equipment close fast with the right structure.
Review Options
We’ll contact you to walk through structures, terms, and end-of-term choices.
Apply for Equipment Leasing
Have your equipment invoice/quote (multi-vendor OK) and 3–4 months of bank statements ready. We’ll verify income/banking and set up ACH autopay when approved.
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