Leases Vs. Loans

If you are planning on starting a small- or medium-sized business and are lacking the funding to properly operate your business without any hangups, you could benefit significantly from equipment leasing through a professional lender. If you are not familiar with leases and what they entail, you may think that leases are similar to loans. However, this couldn’t be further from the truth. In fact, there are many differences between leases and loans, which we will speak more in depth about today.

Receiving funding for new businesses can sometimes be difficult, especially if you don’t possess the credit required to be approved for your financing. We understand that you may be hesitant about applying for an equipment lease, which is why we work with all of our customers directly and help our clients receive funding in less than 24 hours after being approved. If you are interested in applying for an equipment lease, but would first like to learn about how it is different from a loan, continue reading more below.

How Are Leases Different from Loans?


When applying for an equipment lease, you may be wondering what kind of rates you will have to be mindful of during the duration of your lease. Fortunately, leases do not operate in the same way as loans and will rarely require an adjustable rate to be set in place. Alternatively, when applying for a loan, you will most likely have to agree to floating rates that fluctuate from month to month.

Financing Amounts

Those that are looking for complete financing for their business’s equipment will be relieved to learn that leasing is drastically different from loans. Many times, when applying for a loan, you will be required to have a down payment that is equal to a portion of the item’s total value. However, when leasing equipment for your business, you can finance up to 100-percent of the item’s total value. This is especially helpful for small business owners that have limited capital to allocate towards equipment costs.


One of the biggest differences between leases and loans is the time it takes to receive funding after filing your application and getting approved for financing. Typically, it is not uncommon for loans to take weeks before they are approved. With leases, however, you are able to receive full funding in less than 24 hours after your application is approved. For this reason, leasing is a great way for small business owners to receive the funding they need without having to wait for weeks to become approved.

These are just a few of the reasons why leasing is typically more suitable for small business owners that are looking to get funded quickly. If you would like to learn how you can receive funding for your business, or would like to view every industry that we serve, simply visit our website today and click the “Apply” button! To speak with one of our friendly team members today about submitting your equipment lease application with Lease Genie, simply call 402-281-9830 to get started.