While leasing equipment does not bring in money to your business, leasing does save you money to invest in other parts of your business. You have the ability to lease anything from office supplies to trucks for your business activities. When you lease equipment, a manufacturer, dealer, or lender either buys or already owns the equipment you want. In exchange, you make monthly payments to the owner. The monthly payment structure allows you to treat the payments as tax-deductible business expenses. Another benefit to leasing is if you need equipment right away, leases are approved much more quickly than loans, and involve less paperwork and more relaxed credit requirements. If deciding to lease, there are a few factors to take into consideration: Lease term. The length of the lease will affect the amount of your monthly payment, with a longer lease term meaning a lower monthly rent. Up-front payment. What is the size of any up-front payment? Monthly payments. Are the monthly payments reasonable? You can analyze the amount of the payment by determining the interest factor associated with the lease. Return rights. For vendor-leased equipment, under what circumstances can you return the equipment if there are problems? Early termination. Do you have the right to terminate the lease early? Most lessors will be reluctant to do this, but you may be able to negotiate an early termination right in exchange for paying a fee. Option to purchase. Try to negotiate a right to buy the equipment. Equipment lessors will often give you this right at the end of the lease term, usually for a fixed price (e.g., 10 percent of the purchase price of the equipment) or at fair market value. Keep in mind that a good timed lease for office supplies usually lasts about 2 years. Also, make sure there is a cancellation clause just in case.