Capital Leases for equipment leasing and finance mimics traditional loan purchases as it effectively captures the ownership of the asset with exclusive right to use and purchase options but also offers 100% financing; conserving cash up front for other projects with higher ROI potential. If long-term equipment ownership is your goal, then a capital lease for equipment lease financing with a buyout purchase option is an excellent choice. Payments are fixed and as the equipment owner, you can depreciate the equipment and even take advantage of Section 179 incentives and Bonus Depreciation.
Regents’ Capital and Equipment Leasing and Finance is a good option for financing equipment with a long useful life (such as yellow iron, manufacturing machinery, warehousing and racking, etc.) as the equipment may be depreciated on your balance sheet and you may be able to deduct the interest expenses from your taxes.