Equipment Lease Financing

If purchasing the business equipment you need will compromise your cash flow, business equipment leasing may be for you. An Equipment Financing Line[cite::64::cite] is a pre-qualified credit line that can be drawn upon with as little as 24-hours notice. Find out below which option is best for you.

Can’t Decide Whether to Buy or Lease?

Compare our business equipment loans versus business equipment leasing side by side and check out the equipment leasing FAQs below. If you need more details and want to chat, call 888-281-3259 today and let our Equipment Lease Financing specialists help you identify the right solution for your business.

Business Equipment Term Loans

Thinking about buying? Learn more about our Business Equipment Term Loans:

Equipment Lease Financing

Learn More about the benefits of Equipment Lease Financing:

Available Zions Bank Equipment Leasing Options

Tax Lease

With a Tax Lease[cite::65::cite], Zions Equipment Finance retains the depreciation benefit and passes its income tax savings to you in the form of lower business equipment leasing payments. Lease payments are often fully tax deductible. And this structure gives you a variety of end of term options.

Finance Lease

A Finance Lease[cite::64::cite] lets you deduct interest and depreciation as you do with a traditional loan. Ownership of the asset is immediately passed to you at the end of term, or you can choose a predetermined balloon payment to lower your monthly payment throughout the term.


  • Get up to 100% equipment lease financing with little or no down payment, and retain your working capital for daily needs.
  •  Business equipment leasing often provides a lower monthly payment than traditional financing allowing you to preserve your cash flow.
  •  Provides an alternative source of capital so you can avoid last-minute financing and keep existing lines available.
  •  Business equipment leasing often gives you a lower after-tax cost of ownership of an asset.
  •  At Zions Bank, all decisions are made locally in Utah and Idaho, resulting in fast and easy turnaround. Once a line’s in place, transactions can be processed in 24 hours.
  •  Some leases are accounted for as an equipment rental expense, which can improve your financial ratios and profitability measures while lowering your taxable income.

Already Have an Equipment Lease?

Business Equipment Financing

To buy needed equipment for your business, you have two business equipment financing options: to take out a business equipment loan[cite::64::cite] 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.

Business Equipment Loan

Down Payment

Typically 20%


Up to 80% after down payment

Monthly Payments

Standard monthly payments typical of a loan

On Company Balance Sheet


Tax Savings[cite::65::cite]

Cost may be deductible in the first year and only up to a limit determined by the IRS; depreciation may be tax deductible

Interest Savings


Options at Term's End

You own the equipment, you keep it

Business Equipment Leasing

Down Payment

Little or no down payment


Up to 100% with little or no down

Monthly Payments

May be lower than monthly loan payments

On Company Balance Sheet

No, with specific leases

Tax Savings[cite::65::cite]

Yes; 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

  • Return equipment and avoid obsolescence
  • Purchase equipment (possibly at a predetermined price)
  • Continue leasing the equipment
  • (Available options depend on type of lease.)

Get Help Finding the Right Business Equipment Financing

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?

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

If you know which option is right for you, apply online to lease equipment with little or no down payment.

Business Equipment Leasing FAQs

A key advantage of business equipment leasing is that it permits 100% financing, and the term of the lease can be matched with the useful life of the equipment[cite::101::cite].

Lessees vary widely from small, one person operations to Fortune 500 corporations. The kinds of equipment leased are just as diverse.

Equipment for all types of business needs can be leased including aircraft; transportation; IS; food processing/packaging, office equipment and furniture, telecomm, medical, construction, textiles, woodworking, plastics, agriculture, mining, printing, technology and warehousing and distribution.

The type of equipment you want to lease, the term and whether you want to keep the equipment at the end of the term are all be factors in choosing a lease. 

Lessees can lease one piece of equipment at a time or many items on a single lease. On smaller equipment leases, worth thousands of dollars, leases tend to be more standardized. A leveraged lease on a big ticket acquisition, such as an airplane, may include several customized provisions and options that won't appear in a typical lease for a smaller amount.

As a method of acquiring equipment, you'll find leasing fairly straight-forward. It amounts to a rental agreement structured to meet your company's special needs. As lessee, you and the lessor consider the following factors to determine the most effective type of lease for your company:

  • How long you want to use the equipment.
  • What you intend to do with the equipment at the end of your lease.
  • What your company's specific needs are as they relate to future growth.

Your needs will determine what happens at the end of the lease. As a lessee, your options include returning the equipment to the lessor, purchasing the equipment at fair market value or a nominal fixed price; or renewing your lease on the equipment.

Almost any type of equipment can be leased. As the lessee, you deal with the lessor concerning the terms of the lease and the rate. Ancillary expenses, such as taxes, services, insurance and maintenance, are usually the responsibility of the lessee and aren't deductible from the rental payment.

By signing the lease, the lessee assigns its purchase rights to the lessor, who already owns or who then buys the equipment as specified by the lessee. When the equipment is delivered, the lessee formally accepts it and makes sure it meets all specifications. The lessor pays for the equipment, and the lease takes effect.

Leasing allows you to keep your bank lines of credit open. Since leasing companies assume there will be a residual value in the equipment at the end of the lease, they can offer lower rental payments which equals a cash saving to you. 

Some types of term debt can interfere with your company's future financial structure. This does not occur with leasing. The Financial Accounting Standards Board (FASB) considers lease rental payments as an expense, not a debt, under many lease agreements. 

A key advantage of business equipment leasing is that it permits 100% financing, and the term of the lease can be matched with the useful life of the equipment. Therefore, if cash flow is a problem, leasing can help your company avoid down payments and keep scheduled payments low by stretching out payment terms.

Moreover, as your business grows, bank lines of credit and your own cash are still available to support increases in your company's working capital requirements.

Today, more than 80% of all US corporations lease some or all of their equipment. In 1996, over one third of all equipment acquired was through leasing — that's just over $260 billion worth of capital equipment.