Beyond the monthly payment
What belongs in the cost of equipment financing?
Questions about fees, taxes, advance payments, purchase options, and return costs when reviewing U.S. equipment financing terms.
Request a complete payment picture
Ask for the amount due at signing, the number and timing of payments, any advance payments or deposits, and all known fees. Confirm whether quoted figures include taxes, insurance, and services. Keep equipment cost distinct from the total amount payable over the agreement.
Do not confuse a payment factor with APR
A lease payment factor expresses a payment relative to an equipment amount. It is not, by itself, an annual percentage rate. Timing, fees, purchase or residual assumptions, and the form of the transaction can change the comparison. Ask the provider to explain any rate or factor in its offer and any required disclosures.
Account for what happens at the end
List purchase charges, return freight, deinstallation, damage charges, renewal payments, and any notice-related costs relevant to the proposal. A lower recurring payment does not establish a lower total project cost.
- Are deposits refundable or applied to payments?
- Are there interim rental charges?
- What happens on early termination?
- Which costs depend on future choices or conditions?
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Practical project guides
Start with your project
Tell us what you have in mind.
Equipment, timing, and location. Start with the essentials.