6 Best Equipment Leasing Companies 2019

Equipment leasing is a type of financing where business owners make regular payments to equipment leasing companies and in return are granted access to machinery, tools, or equipment that they don’t yet own. We evaluated over 15 leading providers and narrowed it down to the six best equipment leasing companies nationwide.

Top 6 Equipment Leasing Companies 2019

Company	Best For
Crest Capital	(Best Overall) Equipment leasing up to $250,000 for established businesses
National Business Capital	A personalized approach and access to many leasing companies
US Business Funding	Comparing rates from multiple leasing companies
Smarter Finance USA	Startups looking for a straightforward process
Wells Fargo	Businesses that have a banking relationship with Wells Fargo
Commercial Fleet Financing	Semi-truck owner operators who need flexible leasing options

How Equipment Leasing Works

As a borrower, there are several ways to obtain an equipment lease. Some borrowers will use in-house financing provided by the manufacturer or dealer of the equipment being purchased. These arrangements are typically underwritten by a direct equipment leasing company. Another option is to obtain an equipment lease through a bank, while the third option is to use a company which specializes in equipment leasing.

Some of the options and their advantages to you are:

In-house financing: Excellent option if you are purchasing new equipment directly from the manufacturer or factory outlet, but be sure to compare rates.
Bank equipment leasing: Great option for businesses with an established relationship with their bank, however rates may be high and repayment options may not be as flexible.
Equipment leasing lender: Popular option which allows you to quickly lease equipment, new or used, which provides very flexible repayment terms.

Borrowers interested in leasing equipment, especially new or lightly used, should check with the dealer or manufacturer first. Special rates, like 0% interest, and discounts may be available. This type of financing is usually only available to the most creditworthy borrowers. Highly creditworthy borrowers may wish to explore an equipment lease with their bank, although the equipment leasing rates from alternative lenders are often competitive with or better than bank rates.

Borrowers with less than perfect credit, or businesses interested in leasing equipment that doesn’t fall within dealer or bank guidelines—either due to age, hours of operation, or mileage—will want to explore alternative equipment leasing companies.

Types of Equipment Leases

Several types of equipment leases are available, the most common of which are the $1 buyout lease, 10% option leases, and fair market value (FMV) lease. The primary difference between the leases is based on the amount due at the end of the lease in order to own the equipment.

The most popular types of leases and their features are:

$1 buyout: This type of lease most closely resembles a loan. At the end of the term, the borrower pays $1 to own the equipment. This option makes the most sense for businesses that intend to own the asset.
10% option: This lease gives the business the option to pay to own the equipment at the end of the lease. This option is a good choice for businesses that want the choice to walk away at the end of the lease.
FMV lease: This option is a classic lease scenario, where the business can buy the asset at its fair market value at the end of the lease. This is most popular for equipment that will be upgraded frequently.

Capital Lease vs Operating Lease

Businesses will want to compare operating leases vs capital leases (also known as a finance lease). Each has distinct accounting and tax implications. Leases with a bargain purchase option—like a $1 buyout or 10% option lease—are always considered capital leases, while FMV leases are typically considered operating leases.

Who an Equipment Lease is Right For

Equipment leasing can be a great option for businesses that need a piece of equipment for a short period of time, before either upgrading for new equipment or walking away from the equipment entirely. A benefit of equipment leasing is that it often offers greater flexibility than other forms of financing while allowing for frequent upgrades.

Equipment leasing is also a great option for businesses that may not be able to afford loan payments on the equipment, allowing for a balloon option at the end of the lease as well as other flexible options like step-up payments where the monthly payment grows over time. Businesses can use an equipment lease calculator to help choose the best option.

Equipment Leasing vs Equipment Loans

For borrowers considering leasing equipment, it is a good idea to compare another popular equipment leasing method: equipment loans. When deciding between equipment leasing and equipment loans, there are some important questions to ask such as whether the business intends to keep the equipment and how long the equipment is needed.

Businesses that plan to keep the equipment long term, and can afford the monthly payments may find that an equipment loan is a better option. Benefits of an equipment loan include potentially lower interest rates as well as fully amortized payments.

How We Evaluated Equipment Leasing Companies

Equipment leases are available from a variety of lenders and other resources, including traditional banks, alternative lenders, and business loan brokers. To choose the top equipment leasing companies, we evaluated a number of factors that differentiate each provider to choose the best equipment financing companies, including the type of borrower served, variety of programs available, and overall reputation.

The criteria used to evaluate the best equipment leasing companies are:

Overall Costs: The interest rate you can expect to pay to lease equipment as well as additional costs such as documentation and application fees.
Speed of funding: The speed at which you move through the process, from the time of application through to funding.
Application process: The difficulty or ease of applying for financing, and whether you’ll work closely with a specialist or not.
Underwriting criteria: The credit criteria employed by the lender, including the lowest credit score and time in business, as well as their target borrower.
Repayment flexibility: The variety of repayment programs available, including creative repayment options designed for growing and seasonal businesses.
Online reputation: The feedback the business receives on review sites, and other online resources.
Customer service: The speed and professionalism of customer service encountered throughout the research process, as well as by reviewers.

Based on these criteria, we chose Crest Capital as our best overall equipment leasing company. Crest offers rates as low as 5.5% on application only equipment leases up to $250,000, and small business owners can apply online and get qualified in as little as one hour.

Crest Capital: Best Overall Equipment Leasing Company

An established direct lender, Crest Capital has a reputation for straight dealing, offering some of the most competitive rates in the industry. Crest Capital was established in 1989 and offers equipment leasing on new and used equipment between $5,000 and $500,000. Borrowers with at least two years in business and good credit should consider Crest Capital for their equipment leasing needs.

Crest Capital Rates and Fees

Typical rates and fees offered by Crest Capital are:

Interest rate: 5.5% – 9.5%
Prepayment penalty: No
Additional fees: $275 administrative fee

Crest Capital describes its interest rates as near bank rates, and while it is possible to get an equipment lease with an interest rate higher than 9.5% through them, most of its leases fall within that range. Potential borrowers should be aware that Crest Capital does charge a $275 administrative fee on its leases.

Crest Capital Terms

Crest Capital equipment lease terms are:

Lease amount: $5,000 – $500,000
Length of lease: 24 – 72 months
Repayment types: Monthly, step-up, deferred, and seasonal
Collateral: No additional collateral required, UCC lien filing may be required
Personal guarantee: Yes
Speed of funding: Within 48 hours

Crest Capital has several flexible repayment options available, including a step-up program where the payments start small and grow in size over time with your projected revenue. Like most lenders in the small business space, Crest Capital will require a personal guarantee and is likely to file a UCC lien on business assets.

Crest Capital Qualifications

Typical qualifications for an equipment lease with Crest Capital are:

Credit score: 650 (check your score for free)
Time in business: Two years
Annual revenue: No minimum
Asset condition: New or used

Crest Capital’s equipment leasing program is best positioned for established businesses with at least two years in operations, and borrowers should have at least a 650 credit score. Crest Capital does not specify a minimum revenue, instead of basing the total lease amount on a multiple of actual and projected new revenues.

What Crest Capital is Missing

Borrowers with established businesses and strong personal credit will find Crest Capital offers a mix of flexible programs, repayment terms, and low interest rates. Where Crest Capital falls short is extending its offer to borrowers with poor credit, or businesses that cannot show at least two years of operations.

Crest Capital Reviews

Crest Capital has a strong online reputation, with a Better Business Bureau A+ rating and over 4 stars averaged across multiple review sites. Many of the positive reviews are from businesses that indicate they are return customers. Negative reviews were largely nonexistent at the time of writing this article, making it likely that Crest Capital is very efficient at handling customer issues before they escalate.

How to Apply with Crest Capital

To apply for equipment leasing with Crest Capital, including application only funding up to $250,000, borrowers can fill out an online application for approvals within 60 minutes and funding as soon as the same day.

Visit Crest Capital

National Business Capital: Best Equipment Leasing Company for Personalized Service

National Business Capital is an online lending marketplace that takes a personalized approach to matching borrowers with lenders. Established in 2007, it boasts over 75 active lenders in its network willing to finance new and used equipment. National Business Capital is a great choice for borrowers who would like to compare leasing programs and rates from as many lenders as possible.

National Business Capital Rates and Fees

Typical rates and fees offered by National Business Capital are:

Interest rate: 8% – 20%
Prepayment penalty: No, borrowers can get a discount for early payoff.
Additional fees: May vary

With access to a wide range of lenders, from traditional banks to alternative lenders, National Business Capital’s equipment leases will typically fall between 8% – 20%. Borrowers can expect a transparent process, with National Business Capital providing written documentation before signing paperwork. Like most marketplace lenders, it takes a percentage (2.99%) of the origination fee or closing fees, which vary by lender.

National Business Capital Terms

National Business Capital equipment lease terms are:

Lease amount: $10,000 – $1 million
Length of lease: 12 to 60 months
Repayment types: May vary
Collateral: No
Personal guarantee: Yes
Speed of funding: 24-72 hours

With access to a wide network of program lenders, most borrowers are likely to find an equipment lease and repayment terms that work well for them. National Business Capital states that collateral is typically not required, however borrowers should expect the possibility of a UCC lien filing on business assets. Equipment leases can potentially be funded as quickly as the same day.

National Business Capital Qualifications

Typical qualifications for an equipment lease with National Business Capital are:

Credit score: 550+ (check your score for free)
Time in business: No minimum
Annual revenue: No minimum
Asset condition: New or used

National Business Capital provides options for business owners wondering whether they qualify. Businesses with a credit score of 650 or better are eligible for startup financing, and don’t need to meet minimum revenue requirements, while businesses with at least $120,000 in gross annual sales can likely qualify with a credit score of 550 or better.

What National Business Capital is Missing

With access to a wide variety of equipment leasing programs and many flexible terms paired with a wide variety of different funding options for businesses that need working capital, National Business Capital is a strong contender on our list. However, National Business Capital is not a direct lender, so businesses hoping to build a relationship with their lender may wish to consider other options.

National Business Capital Reviews

National Business Capital’s reviews should give uncertain business owners some confidence, with an A+ rating from the BBB and over four stars on average from various review sites. Positive reviewers note a professional and honest team, often calling out a funding expert by name. Negative reviews are less frequent, with most indicating that the offer received didn’t meet the reviewer’s expectations.

How to Apply with National Business Capital

For business owners interested in applying for an equipment lease, National Capital boasts an online application that can be filled out in a minute or less, and funding is available in as little as one day.

Visit National Capital

US Business Funding: Best Equipment Leasing Company for Credit Challenged Businesses

With a quick application process and responsive funding specialists dedicated to rapid turnarounds, US Business Funding prides itself on snappy equipment lease fundings, often within 24 hours of submitting an application. Offering flexible equipment lease terms on new and used equipment and advertising 95% approval rates, borrowers that have had trouble finding financing will want to give US Business Funding consideration.

US Business Funding Rates and Fees

Typical rates and fees offered by US Business Funding are:

Interest rate: 8% – 20%
Prepayment penalty: No
Additional fees: Fees will vary by lease program and lender

As another marketplace lender, US Business Funding has access to a variety of lenders with competitive rates, which start around 8% and typically cap out around 20%. Interest rates on higher risk deals may go higher. US Business Funding charges a fee, which is disclosed in advance, based on the total funding amount. This can vary depending on the program as well as the lender.

US Business Funding Terms

US Business Funding’s equipment lease terms are:

Lease amount: $10,000 and up, no maximum amount
Length of lease: Two to five years
Repayment types: Seasonal, deferred
Collateral: UCC lien filed on asset
Personal guarantee: Yes, although corp-only financing is available
Speed of funding: 24 hours

US Business Funding emphasizes the speed of its approvals, as well as funding, so borrowers who are in a pinch and need a quick decision will want to put them on their short list. While additional collateral is not typically required, in many cases a UCC lien will be filed on business assets, and a personal guarantee is likely to be mandated.

US Business Funding Qualifications

Typical qualifications for an equipment lease with US Business Funding are:

Credit score: 500+ (check your score for free)
Time in business: two years
Annual revenue: $250,000
Asset condition: New or used

US Business Funding is focused on established businesses with strong revenue to borrower credit, requiring $250,000 in annual revenue or more, and at least two years in business. This makes them an excellent option for bad credit business loans and equipment financing. In addition to financing new and used assets, US Business Funding is able to fund titled vehicles, making them a good fit for businesses that need to finance “over the road” equipment.

What US Business Funding is Missing

With refreshing minimum credit criteria, borrowers will find that US Business Funding is a great option for equipment financing with bad credit. Businesses that don’t have two years in operations, as well as businesses that cannot show at least $250,000 in annual revenues, won’t make the cut, however, so startups and smaller firms will need to look elsewhere.

US Business Funding Reviews

Counting an A+ rating from the BBB among its accolades, US Business Funding reviews are generally positive, with a 4+ star average, noting a streamlined and simple application and funding process. On the negative side, several reviewers took exception to US Business Funding’s marketing practices, specifically noting that the company sent unsolicited emails and that unsubscribing was difficult.

How to Apply with US Business Funding

For help getting an equipment lease from US Business Funding’s lending marketplace, borrowers can fill out an instant application online, with approvals available within an hour and funding as soon as the same day.

Visit US Business Funding

Smarter Finance USA: Best Equipment Leasing Company for Startups

Business owners that have spent any time researching equipment leasing have probably encountered Smarter Finance USA on their journey. Smarter Finance USA specializes in financing borrowers with challenged credit and entrepreneurs who need equipment to get their startups off the ground.

Smarter Finance USA Rates and Fees

Typical rates and fees offered by Smarter Finance USA are:

Interest rate: 6% – 30%
Prepayment penalty: Varies by lease.
Additional fees: Documentation fee $300-$850 based on equipment

Smarter Finance USA boasts a competitive rate range, starting at 6%; however, borrowers should note the interest rate may be as high as 26% for under-qualified borrowers. Fees generally include a loan documentation fee of $300 to $500 for non-titled equipment, and $500 to $850 for titled equipment. Borrowers should ask for these in a separate document before signing.

Smarter Finance USA Terms

Smarter Finance USA’s equipment lease terms are:

Lease amount: $2,500 – $250,000
Length of lease: 12 – 84 months
Repayment types: Weekly, monthly, seasonal and deferred options are available.
Collateral: No additional collateral, UCC lien may be required.
Personal guarantee: Yes
Speed of funding: Same or next day available.

Borrowers should expect flexibility with Smarter Finance USA, with repayment options ranging from weekly to seasonal, based on industry and credit risk. Borrowers should expect a UCC lien to be filed and in most cases, a personal guarantee will be required as well. To keep payments low, leases are available up to seven years, dependent on the expected life of the equipment.

Smarter Finance USA Qualifications

Typical qualifications for an equipment lease with Smarter Finance USA are:

Credit score: 550+ (check your score for free)
Time in business: Startups are OK
Annual revenue: No minimum
Asset condition: New or used

Smarter Finance USA has a diverse set of minimum qualifications, working with borrowers with at least a 550 credit score, and is a great option for equipment financing for startups. Business owners should keep in mind that with lower qualifications come higher interest rates, and that a higher down payment may also be required to secure financing.

What Smarter Finance USA is Missing

Smarter Finance USA is an informative equipment leasing resource offering a wide range of financing options and flexible requirements. For the wealth of information available on the Smarter Finance USA website, it is unfortunately sparse when it comes to details on rates and other costs. Well qualified borrowers may wish to compare funding options, as better rates and lower costs may be available with a direct lender.

Smarter Finance USA Reviews

Business owners that appreciate Smarter Finance USA’s approach to financing will appreciate that behind the unique marketing the company appears reputable, boasting an A+ rating from the BBB. With an overall average in the high-4-star neighborhood across multiple review sites, a theme from positive reviewers is that Smarter Finance USA was able to fund them when other lenders weren’t. Few negative reviews existed at the time of writing this article.

How to Apply with Smarter Finance USA

Business owners interested in applying for an equipment lease with Smarter Finance USA can fill out an application online for same day decisions and funding in as soon as 24 hours.

Visit Smarter Finance USA

Wells Fargo Equipment Leasing: Best for Businesses That Bank With Wells Fargo

One of the nation’s largest banking institutions, with over 5,000 branches spread out across the U.S., Wells Fargo Bank is a popular bank for small businesses that enjoy the convenience of Saturday hours and seamless online access. Business owners who would like to keep their equipment leasing under the same roof as their business checking account should consider Wells Fargo.

Wells Fargo Rates and Fees

Typical rates and fees offered by Wells Fargo are:

Interest rate: Starting at 6.25%
Prepayment penalty: No
Additional fees: No

Wells Fargo does not advertise the range for its equipment leasing interest rates; however, it does indicate that rates start at 6.25%. That rate is only available to customers with a connected business checking account and auto-pay set up. Information regarding additional fees is difficult to come by, and potential borrowers should ask for a written disclosure before accepting financing.

Wells Fargo Terms

Wells Fargo’s equipment lease terms are:

Lease amount: $35,000+
Length of lease: 12 – 84 months
Repayment types: Monthly
Collateral: No collateral required, UCC lien may be required
Personal guarantee: May vary
Speed of funding: Varies by industry

Repayment options are not listed by Wells Fargo, however, borrowers should expect a monthly option, and more flexible options may be available. Whether a personal guarantee is required or not will depend on the depth of the business’s credit, and collateral requirements may include a UCC lien. Expect funding speeds to be slightly slower than some alternative lenders, between one and three days.

Wells Fargo Qualifications

Typical qualifications for an equipment lease with Wells Fargo are:

Credit score: 640+ (check your score for free)
Time in business: Three years
Annual revenue: No minimum
Asset condition: New or used

Wells Fargo has some of the strictest underwriting guidelines on this list, requiring a minimum of three years in business and personal credit scores of 640 or higher. Wells Fargo will lend up to $1.00 in funding for every $1.50 in revenue, so while it doesn’t list a minimum revenue, the effective minimum revenue is $52,500.

What Wells Fargo is Missing

For business owners that already have a banking relationship with Wells Fargo, the bank’s equipment leasing presents a convenient option with potentially competitive rates for borrowers wishing to consolidate their banking relationship. However, Wells Fargo is not very transparent about its program leaving a lot of unanswered questions, and the minimum lease amount of $35,000 means businesses with more modest needs should look elsewhere.

Wells Fargo Reviews

As one of the largest banks in the U.S., Wells Fargo has accumulated thousands of reviews, and overall sentiments on the bank are mixed. Reviewers that have left feedback regarding positive interactions reference Wells Fargo’s extensive branch and ATM network, and friendly and professional staff. Some negative reviews note that borrowing costs are high, and that receiving help with an issue can be difficult.

How to Apply with Wells Fargo

Business owners can apply online to qualify for equipment leasing with Wells Fargo, as well as learn more about rates and terms. Borrowers can also locate a branch and work with a banker directly.

Visit Wells Fargo

Commercial Fleet Financing: Best Equipment Leasing Company for Transportation Companies

Known for specializing in titled vehicle equipment leasing for new and used vehicles, Commercial Fleet Financing offers semi-truck financing on vehicles up to 1 million miles as well as financing for tow trucks, box trucks, and construction equipment. CFF will work with single unit operators as well as owners of large fleets. Truckers and contractors that need to upgrade or replace their fleet of vehicles should consider Commercial Fleet Financing.

Commercial Fleet Financing Rates and Fees

Typical rates and fees offered by Commercial Fleet Financing are:

Interest rate: 6% – 16%
Prepayment penalty: No
Additional fees: No

Commercial Fleet Financing offers competitive interest rates starting at 6% and typically topping out at 16%. Borrowers with challenged credit may not qualify for these rates, however, Commercial Fleet Financing offers subprime rates through a subsidiary. Owner-operators and businesses will also want to consider the cost of semi-truck insurance.

Commercial Fleet Financing Terms

Commercial Fleet Financing equipment lease terms are:

Lease amount: Up to $150,000 application only, financing available up to $1 million
Length of lease: 12 – 108 months
Repayment types: Monthly
Collateral: No collateral required, UCC lien may be required
Personal guarantee: Depends on time in business
Speed of funding: 24-48 hours

Depending on how long the business has been established, Commercial Fleet Financing may not require a personal guarantee, which can be great for established businesses seeking to keep business and personal separate. No additional collateral is required, but a UCC lien on the asset, or a blanket lien on business assets, may be.

Commercial Fleet Financing Qualifications

Typical qualifications for an equipment lease with Commercial Fleet Financing are:

Credit score: 640 (check your score for free)
Time in business: Two years
Annual revenue: None
Asset condition: New and used, up to 1 million miles

In general, Commercial Fleet Financing is focused on working with relatively strong borrowers, asking for a minimum 640 credit score and two years in business in order to finance. For borrowers with challenged credit, Commercial Fleet Financing does offer additional options, with higher interest rates, through its own subprime lending subsidiary.

What Commercial Fleet Financing is Missing

Commercial Fleet Financing presents as a strong option for truckers and other business owners who need to finance titled vehicles such as semi-trucks and construction equipment. Business owners looking for general equipment financing will want to consider other options.

Commercial Fleet Financing Reviews

Averaging over 4 stars across review sites, Commercial Fleet Financing holds an A+ rating from the Better Business Bureau. Positive reviews note a professional, caring company that tries hard to get deals done that are in the best interests of its customers. Few negative reviews exist at this time.

How to Apply with Commercial Fleet Financing

For approvals as quickly as two hours on semi-truck, box truck, or construction equipment leasing from Commercial Fleet Financing, borrowers can apply online to receive approvals in as little as two hours on new and used equipment.

Visit Commercial Fleet Financing

Bottom Line

There are an endless number of equipment leasing companies out there, ranging from traditional banks to alternative lenders and brokers. The company you choose should be based on a variety of criteria, including minimum underwriting guidelines, types of programs available, and which equipment leasing company offers the lowest overall costs.

Crest Capital is our choice for best overall equipment leasing company. Offering competitive interest rates starting at 6%, and application only leases up to $250,000, business owners looking to lease equipment can apply online.