Equipment leasing brokers typically offer two types of equipment lease financing for your business: finance and true.

Finance leases are an advantageous form of lease financing because it gives you the option to purchase equipment after a period of time for a nominal fee, usually one dollar. Equipment leasing brokers who offer these types of leases can help your business if you plan to keep the equipment after your agreement is up. The payment terms last for about as long as the expected useful life of the equipment.

True leases differ from other types of lease financing because they don’t usually last for the expected life of the equipment. The equipment leasing broker gives you the option to walk away or buy it outright at fair market value. The payment terms of a true lease are typically lower since lessors can resell the equipment to another company when the terms of the agreement expire. Unlike finance leases, you can write off the payments on a true lease.

Lease financing payment options
Depending on your company's financial situation, equipment leasing brokers can provide lease financing that includes different payment plans to suit your needs.
For instance, if you own an agricultural business that relies on certain times of the year for a majority of revenue, a skip lease allows you to miss payments in slow months without penalty. If you have limited cash on hand and need the equipment to grow revenue, a step-up lease gives you the benefit of the doubt that you can make higher lease payments over time. Equipment leasing brokers begin your payment schedule with small payments that gradually increase over time.

Selecting the right equipment leasing broker
When choosing an equipment leasing broker, make sure you meet with several brokers and provide the following information:

1. Cost – The total value of the lease
2. Length – The number of months you must make payments towards the lease
3. Purchase - Whether or not you plan to buy the equipment at the end of term.
4. Credit score – Lessors will find out how strong your credit is and the size of your payment can increase or decrease depending on the score.

Once you settle on the equipment leasing broker to work with, complete an application but only if you’re positive you will use the vendor he recommends. Since the applications show up on credit summaries, your report will show a new inquiry each time you submit an application. This could potentially harm your chances at good leasing terms in the future.