Finance equipment the way you actually use it.
A loan and a lease can look alike on the surface and cost very different amounts. We translate every option into the same terms, effective cost and fit with the equipment's useful life, then place the structure that works.
Equipment decisions are financing decisions.
The quote that arrives first is rarely the one that costs least over the life of the equipment.
You are buying new equipment
New machines, vehicles or systems can be financed over a term matched to how long they will earn for you.
Your equipment is owned outright
Equipment you own free and clear can be refinanced or sold and leased back to free up cash.
You are comparing quotes
Vendor financing, leases and bank loans are rarely comparable as quoted. One monthly payment can hide a much higher rate.
Equipment turns over quickly
When equipment will be replaced before it wears out, a lease that hands it back can cost less than owning it.
Four ways to pay for the same equipment.
Each one trades ownership, cash up front and monthly cost differently.
Equipment loan
You own the equipment from day one. The loan amortizes over a term matched to its useful life.
Buyout lease
Payments build toward ownership, and you buy the equipment for a nominal amount at the end.
Fair market value lease
Lower payments. At the end you return it, renew or buy it at market value.
Equipment leaseback
Equipment you already own is sold to a lessor and leased back, turning equity into cash.
Ownership, cash up front and monthly cost, side by side.
| Equipment loan | Buyout lease | Fair market value lease | |
|---|---|---|---|
| Ownership | Yours from the start | Yours at the end for a nominal price | The lessor's, unless you buy at market value |
| Cash up front | A down payment is common | Often one or two payments in advance | Often one or two payments in advance |
| Monthly payment | Moderate | Moderate | Lowest |
| End of term | You own it | You own it | Return, renew or buy |
| Best for | Long lived equipment you will keep | Equipment you will keep, with less cash down | Equipment you will replace |
General characteristics only. Terms vary by lender and equipment. Tax and accounting treatment differs by structure, so review it with your CPA.
What does that lease quote really cost?
A lease quote shows a monthly payment, not a rate. This calculator finds the rate built into the lease and compares it with a loan on the same equipment.
Enter the cost, the term and the quote you received.
Illustrative comparison only. Assumes payments at the end of each month and ownership at the end of both options. Excludes taxes, fees, insurance and tax treatment.
Built for businesses where equipment drives revenue.
Strong candidates
- Equipment with a long useful life and real resale value
- Two or more years in business
- Steady cash flow to cover the payments
- Titled or serial numbered assets such as trucks, machine tools, medical and construction equipment
- Owned equipment with meaningful remaining value, for a refinance or leaseback
Usually a harder fit
- Highly customized equipment with little resale value
- Software and installation costs with no collateral value
- Startups with no operating history
- Equipment that will be obsolete before the term ends
- Businesses already heavily borrowed against the same assets
Most of the work happens before a lender sees the deal.
We handle the preparation that decides your terms, and stay in it through closing.
Analyze
We compare every quote on effective cost, not monthly payment, and check how it fits your existing loans.
Qualify
Equipment type, age and resale value decide which lenders will compete, so we lead with the right ones.
Structure
Term matched to useful life, with down payment and end of term options that fit your plans.
Execute
We take it to banks and equipment lenders, compare offers and manage documents to funding.
Illustrative scenario. Not a specific client or transaction.
A trucking company with about $9M in revenue was quoted a vendor lease on ten new tractors at a monthly payment that looked competitive.
Translated into an annual rate, the quote cost meaningfully more than a bank equipment loan over the same term. Financed through an equipment loan with a modest down payment instead, the company owned the trucks outright at the end and kept its vendor relationship.
What owners ask us first.
Is it better to lease or buy equipment?
It depends on how long you will keep the equipment, its resale value and your cash position. The calculator gives a first comparison. The final decision should include your CPA's view of tax and accounting treatment.
Can I finance used equipment?
Often, yes. Lenders look at age, condition and resale value, and terms are usually shorter than for new equipment.
Can I raise cash from equipment I already own?
Yes. Equipment you own free and clear can support a refinance or an equipment sale leaseback, depending on its value and condition.
How much down payment is required?
It varies by lender, equipment type and credit profile, from none to a meaningful share of the cost. Stronger credits and equipment with good resale value usually need less.
Does equipment financing affect my bank line?
It can. Equipment debt counts toward leverage and coverage covenants, and a blanket lien from your bank may require its consent. We check this before you sign.
How is Cobalt paid?
Advice is free. We are compensated when financing closes, and we disclose how before you commit to anything.
Tell us about the equipment.
A Managing Partner reviews every inquiry, usually within one business day. No credit pull and no obligation to start the conversation.
- If there is a fit, we will ask for the equipment quote and recent financial statements.
- Your loan and lease comparison is included with your message.