Honest comparison of features, costs, and best use cases. Updated 2026.
| Factor | Equipment Financing (Loan) | Equipment Lease |
|---|---|---|
| Ownership | You own at end | Lessor owns; option to buy |
| Down Payment | 0-20% | 0-10% typical |
| Term | Up to 60 months | 24-60 months |
| Tax Treatment | Section 179 deduction available | Lease payments deductible |
| Best For | Equipment you'll keep long-term | Equipment that becomes obsolete |
| Total Cost | Lower over equipment lifetime | Higher cumulative cost |
| Build Equity | Yes | No |
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