The Truth about Equipment Leasing Rates

Have you ever thought about the implication of the question ~ “Can I Be Honest?” The answer is, of course, YES PLEASE. You can and should be honest, and the implication of the question is that you aren’t always. Having said that ~ my long experience in equipment leasing and financing is that sales people in this industry are not always forthright. It is to their own detriment that they do not share the truth … and all of it. It should not be this way. Below is a range of rates, or yields when you take into account residuals, for various businesses with Best, Good, and Challenged Credits.

Here’s the truth about equipment leasing rates

BEST: Rates for Better & Best Credits

Bank Rates for Equipment Leasing will range from 4 – 8%

Non-Bank Rates will range from 8 – 14%

Start-up Rates will usually be above 15% (at minimum)

Good: Rates for Good ~ Maybe a few minor credit problems along the way.

Non-Bank Rates will range from 9% – 19%

Start-up rates will be above 20% in the category.

Challenged: A business credit may be challenged for a number of reasons and understanding that is beyond the scope of this post.

Non-Bank Rates will usually be above 18% and often much higher.

There you have it ~ equipment leasing rate expectations.

Of course, if you are reading this post … you may have an equipment leasing or equipment financing need. Call us ~ we would welcome a conversation!

816.587.3400