Restaurant Equipment Leases: Pros, Cons & Costs

You’ve perfected your menu, found the perfect location, and are ready to bring your culinary vision to life. Then comes the reality check: the cost of a commercial-grade kitchen. That state-of-the-art oven and walk-in freezer suddenly feel out of reach, and the dream can start to feel a bit daunting. Before you compromise on quality or drain your savings, it’s worth exploring a smarter way to equip your space. Restaurant equipment leases offer a path forward, giving you access to the tools you need with predictable monthly payments instead of a crippling upfront cost. This article is your complete guide to understanding how leasing can be a game-changer for your cash flow and operational efficiency.

Key Takeaways

• Leasing Protects Cash Flow, Buying Builds Equity: Leasing keeps your capital free by avoiding large upfront costs, which is a huge plus for daily operations. However, buying or financing equipment means you own a valuable asset once it's paid off, which is often the more affordable choice over time.
• The Fine Print Determines the Real Cost: Your lease agreement dictates everything from hidden fees and maintenance duties to your end-of-term options. A thorough review is the best way to avoid costly surprises and ensure the contract truly works for your restaurant.
• Lease for Tech, Own the Workhorses: Use leasing strategically for equipment that you'll want to upgrade, like POS systems. For foundational, long-lasting equipment like ovens or fryers, buying or financing is often a smarter long-term investment that builds value in your business.

What is Restaurant Equipment Leasing?

Think of restaurant equipment leasing as a long-term rental agreement for your kitchen gear. Instead of buying a brand-new convection oven or walk-in freezer with a large, one-time payment, you pay a manageable monthly fee to use it for a set period. This is a popular restaurant equipment financing solution that helps you get the tools you need to operate without draining your cash reserves. It’s an excellent way for new restaurants to get off the ground or for established kitchens to upgrade their equipment without a massive capital investment.

At its core, a lease is a contract between you and a leasing company. You get to use top-of-the-line equipment immediately, and they receive regular payments over the course of the lease term, which typically lasts from two to five years. This arrangement allows you to preserve your working capital for other essential expenses like payroll, inventory, and marketing. At the end of the term, you usually have a few options: you can buy the equipment, renew the lease, or return it and upgrade to a newer model. It’s all about flexibility and managing your cash flow effectively.

How Leasing Works

The process is pretty straightforward. Once you select the equipment you need, you’ll work with a leasing company to create an agreement. This contract outlines how much you’ll pay each month and for how long. You’re essentially renting the equipment for that fixed term. This approach helps you avoid the sticker shock of purchasing expensive items outright, spreading the cost over time. Instead of one huge expense, you have a predictable monthly payment that you can easily factor into your budget. This makes financial planning much simpler and keeps your cash available for day-to-day operations.

Common Equipment You Can Lease

Just about any piece of equipment you need for your restaurant can be leased. This isn't just for the big-ticket items; you can lease a wide range of gear to fully outfit your kitchen and dining area. Essential cooking equipment like commercial ovens, ranges, and powerful deep fryers are common choices. The same goes for cold storage solutions, including industrial refrigerators and walk-in freezers. Even front-of-house items like point-of-sale (POS) systems and furniture can be included in a lease, helping you create the perfect dining experience from day one.

The Pros of Leasing Restaurant Equipment

Deciding how to acquire your kitchen equipment is a huge financial decision. While buying everything outright has its appeal, leasing offers some compelling advantages that can make a real difference, especially when you're just starting out or looking to expand. Think of leasing as a strategic tool that gives you flexibility and financial breathing room. It allows you to get your hands on high-quality, professional-grade equipment without draining your bank account in one go.

For many restaurant owners, the benefits go far beyond just the initial savings. Leasing can help you manage your cash flow more effectively, keep your kitchen modern and efficient, and even offer some nice tax perks. It’s about finding a smarter way to equip your restaurant for success. Instead of tying up all your capital in assets that depreciate, you can invest it back into other critical parts of your business, like marketing, staffing, or creating an amazing customer experience. Let's break down the key reasons why leasing might be the perfect fit for your restaurant.

Lower Upfront Costs and Better Cash Flow

The most immediate and attractive benefit of leasing is the minimal upfront cost. Outfitting a commercial kitchen is expensive, and purchasing every piece of equipment can require a massive capital investment. Leasing allows you to get the restaurant equipment you need with a much smaller initial payment, sometimes just the first month's payment and a security deposit.

This approach keeps your cash free for other essential expenses like inventory, payroll, and marketing. Instead of one huge expenditure, you have predictable, manageable monthly payments that are easier to build into your budget. This improved cash flow is a game-changer for new and growing restaurants, giving you the financial stability to handle unexpected costs and invest in growth.

Access to the Latest Technology

The restaurant industry is always evolving, and so is its technology. New ovens cook faster, freezers are more energy-efficient, and prep tables are designed for better workflows. When you buy equipment, you’re locked in with that technology for years. Leasing, on the other hand, gives you the flexibility to upgrade.

At the end of your lease term, you can easily swap out your old equipment for the latest models. This ensures your kitchen remains competitive, efficient, and up to current standards without the constant cycle of buying and selling. You can keep your kitchen modern and your utility bills lower by using state-of-the-art equipment that you might not have been able to afford otherwise.

Flexible Terms and Tax Advantages

Compared to traditional bank loans, securing a lease is often a faster and more straightforward process. Leasing companies typically offer more flexible terms and have less stringent approval requirements, which is great news for new businesses without a long credit history. This means you can get the equipment you need and open your doors sooner.

Furthermore, leasing can offer significant tax benefits. In many cases, your monthly lease payments can be deducted as an operating expense, which can lower your overall taxable income. While you should always consult with a tax advisor to understand your specific situation, this potential advantage makes restaurant equipment financing through a lease an even more attractive option for managing your restaurant's finances.

The Cons of Leasing Restaurant Equipment

While leasing can feel like a quick fix for getting your kitchen up and running, it’s not without its downsides. Before you sign a lease agreement, it’s important to look at the full picture. The convenience of low initial payments can sometimes mask long-term financial and operational challenges. For many restaurant owners, the drawbacks of leasing can outweigh the immediate benefits, especially when you consider the total cost over time and the lack of flexibility.

The main issues with leasing fall into three categories: the overall cost, the strict contracts, and the potential for hidden fees. You might find that you pay far more than the equipment is actually worth, all without ever owning it. You could also get locked into a rigid agreement that doesn’t allow your business to adapt or grow. And if you’re not careful, unexpected maintenance rules and extra charges can eat into your profits. Understanding these potential pitfalls will help you decide if leasing is truly the right path for your restaurant or if exploring restaurant equipment financing might be a better long-term strategy.

Higher Long-Term Costs and No Ownership

The most significant drawback to leasing is the total cost. While the small monthly payments are attractive, they add up quickly. Over the course of a two- or three-year lease, you can easily end up paying much more than the equipment’s sticker price, especially when interest is factored in. At the end of the term, you’re left with a choice: renew the lease, return the equipment, or buy it at its current market value. After making payments for years, you still don’t own the asset. This cycle of payments without building equity can be a major financial drain. When you purchase your own refrigerators or ovens, every payment brings you closer to full ownership of a valuable asset.

Contract Restrictions and Termination Fees

Lease agreements are legally binding contracts that can be incredibly rigid. You are typically locked in for the entire term, regardless of how your business needs change. What happens if your menu evolves and you no longer need that specialty oven? You’re still required to make the payments. If your business struggles or you decide to close, breaking a lease isn’t easy or cheap. Most leasing companies charge hefty termination fees that can amount to the remainder of your payments. This lack of flexibility can stifle growth and make it difficult to pivot when you need to, tying up capital in equipment that may no longer serve your restaurant’s goals.

Maintenance and Potential Hidden Costs

While some lease agreements include maintenance, this can be a double-edged sword. The leasing company often dictates who can perform repairs, and you may be restricted from making any modifications to the equipment. Furthermore, the contract’s fine print can hide a variety of unexpected costs. You might be responsible for insuring the equipment or liable for any cosmetic damage beyond normal wear and tear. Failing to read every line can lead to surprise charges for things you thought were covered. These hidden costs can turn an affordable lease into a financial burden, making direct ownership of key items like deep fryers a more predictable and transparent option.

What Restaurant Equipment Can You Lease?

When you think about leasing, big-ticket items like ovens and walk-in coolers probably come to mind. But the reality is, you can lease almost any piece of equipment your restaurant needs to operate. From the back of the house to the front, restaurant equipment financing covers a surprisingly wide range of tools and furniture. This flexibility is one of the biggest draws for new and established restaurant owners alike, as it allows you to outfit your entire space without draining your capital. Let’s look at some of the most common categories of equipment you can lease.

Kitchen Staples: Refrigerators, Freezers, and Prep Tables

Your kitchen’s foundation is built on reliable cold storage and prep space. Leasing kitchen equipment such as refrigerators, freezers, and prep tables allows you to secure these essentials without the heavy upfront cost. These pieces are the unsung heroes of your daily operations, and having high-quality, dependable units is non-negotiable for food safety and efficiency. By leasing, you can get top-of-the-line commercial freezers and spacious prep tables that might otherwise be out of your budget. This approach helps you maintain crucial storage and preparation capabilities while preserving cash for other important areas of your business, like marketing or payroll.

Cooking Powerhouses: Fryers, Ovens, and Dishwashers

Every restaurant needs its workhorses—the equipment that handles the heat and keeps the orders flowing. This is where your cooking and cleaning powerhouses come in. Commonly leased items include high-capacity ovens, commercial deep fryers, and industrial dishwashers, all of which are critical for an efficient kitchen. Leasing this type of equipment gives you access to powerful, modern technology that can speed up cook times and streamline your cleaning process. Instead of settling for a smaller, less efficient model that fits your purchase budget, you can lease the exact piece of equipment you need to execute your menu perfectly and keep up with customer demand.

Front-of-House Gear: POS Systems and Furniture

Leasing isn’t just for the back of the house. Your front-of-house setup, from the furniture to the payment systems, creates your restaurant's atmosphere and customer experience. A restaurant equipment lease is a financing solution that allows you to rent everything you need, including front-of-house gear like POS systems and furniture, for a fixed term. This makes it much easier to manage your cash flow while creating a welcoming and professional environment for your guests. You can lease modern tables, comfortable chairs, and the latest POS technology to ensure smooth service and a great first impression, all without a massive initial cash outlay.

Understanding Your Lease Financing Options

When you start looking into leasing, you’ll quickly realize there isn’t just one type of agreement. The world of equipment financing has its own language, with terms like "capital lease," "operating lease," and "$1 buyout." Getting familiar with these options is the key to finding a plan that fits your budget and your restaurant's long-term goals. Think of it like choosing a menu item—what works for a bustling diner might not be the right fit for a quiet cafe.

Choosing the right lease structure affects everything from your monthly payments to whether you own the equipment at the end of the term. Some leases are simple, short-term rentals, perfect for trying out a new piece of tech. Others are structured more like a loan, designed for you to eventually own that essential piece of kitchen equipment. We’ll walk through the most common types of leases so you can confidently decide which path is best for your business.

Operating Leases vs. Capital Leases

The main difference between operating and capital leases comes down to ownership. An operating lease is like renting an apartment; you use the equipment for a set period, make monthly payments, and then return it when the term is up. These are typically shorter-term agreements and are great for equipment that you might want to upgrade in a few years.

A capital lease, on the other hand, is more like a rent-to-own plan for your kitchen. These are longer-term agreements where you have the option to purchase the equipment at the end of the lease, often for a reduced price. This structure is ideal for foundational equipment you know you’ll need for years, like heavy-duty freezers or prep tables.

Fair Market Value vs. $1 Buyout Leases

If you go with a capital lease, you’ll usually have a choice between two buyout options. The first is a Fair Market Value (FMV) lease. With an FMV lease, your monthly payments are lower, and at the end of the term, you can choose to buy the equipment for its current market value. This gives you flexibility—if you no longer need it, you can simply return it.

The second option is a $1 Buyout lease. Here, your monthly payments will be higher, but at the end of the term, you can purchase the equipment for just one dollar. This is a great choice when you are certain you want to own the equipment outright. It’s a straightforward path to ownership for essential gear you can’t operate without.

Vendor Financing Programs

Many restaurant owners find success with vendor financing programs. This is when you get your lease directly from the company selling the equipment. These programs can be a great option because they often provide flexible terms and a streamlined process—you can shop for restaurant equipment and secure financing all in one place.

Because the vendor knows the equipment inside and out, these agreements can sometimes include maintenance and support packages, which helps you manage cash flow and avoid unexpected repair bills. As with any financial decision, it’s smart to research and compare different leasing companies and restaurant equipment financing options to find a partner that offers favorable terms and understands your business needs.

How Do Lease Payments Work?

When you lease restaurant equipment, you're essentially renting it for a fixed period instead of buying it outright. This arrangement breaks down the total cost into manageable monthly payments, making it easier to get the gear you need without a massive initial investment. Think of it like a car lease—you pay a set amount each month to use the equipment, and at the end of the term, you have a few options for what to do next.

Understanding how these payments are structured is key to making a smart financial decision for your restaurant. The process involves figuring out your monthly cost, knowing what's required upfront in terms of down payments and credit, and planning for what happens when your lease agreement ends. Let's walk through each of these steps so you know exactly what to expect.

Calculating Your Monthly Payments

Your monthly lease payment is determined by a few key factors: the total cost of the equipment, the length of your lease, and the lender's financing rate. A more expensive piece of equipment, like a walk-in freezer, will naturally have a higher monthly payment than a smaller prep table. Similarly, a shorter lease term (like 24 months) will mean higher payments than a longer term (like 60 months), but you'll pay it off faster. The financing company will also apply a rate, sometimes called a "lease factor," which is their charge for lending you the funds. Combining these elements gives you a predictable monthly expense you can build into your budget.

Down Payments and Credit Requirements

One of the biggest draws of leasing is that it often requires little to no down payment. Unlike a traditional loan where you might need to put down 10% or 20%, many leasing programs let you get started with just the first and last month's payment. This is a huge advantage for preserving your cash flow. Lenders will review your credit history, but the requirements can be more flexible than those for a bank loan. Many companies specializing in restaurant equipment financing understand the industry and can often approve applications within a day or two, helping you get the equipment you need quickly.

End-of-Lease Buyout Options

When your lease term is up, you aren't left hanging. You typically have three main choices. First, you can simply return the equipment, which is a great option if you want to upgrade to the latest model. Second, you can often renew the lease, sometimes at a lower monthly rate. Finally, if you've grown to love that piece of equipment and want to keep it, you can buy it. The purchase price will depend on your original agreement—it could be a "fair market value" price or a pre-set amount, sometimes as low as $1. This flexibility allows you to decide what’s best for your business once you’ve had a chance to use the equipment.

How to Choose the Right Leasing Company

Finding the right leasing company is just as important as picking out the perfect six-burner range. This is a long-term partnership, and you want a partner who understands the restaurant industry and is invested in your success. A great leasing company offers more than just equipment; they provide flexible terms, quality support, and peace of mind. Before you sign on the dotted line, it’s essential to do your homework. You’ll want to compare different companies, get a firm grasp of the contract terms, and confirm the quality of the equipment you’ll be receiving. Taking the time to vet your options now will save you from major headaches down the road. Think of it as building your restaurant's foundation—you need every piece to be solid, including your financial partnerships. Let's walk through what to look for to ensure you find a leasing partner that truly supports your business goals.

What to Look for in a Leasing Partner

Your first step is to find a reputable company with a proven track record in the foodservice industry. Look for partners who specialize in restaurant equipment because they’ll understand the unique demands of a commercial kitchen. Start by researching and comparing different leasing companies. A great way to gauge reliability is by reading online reviews and asking for recommendations from other restaurant owners in your network. A trustworthy partner will be transparent about their process and happy to answer all your questions. They should offer clear, favorable terms that align with your business needs, providing a straightforward path to getting the equipment you need. Explore different restaurant equipment financing options to find a company that feels like a true ally.

Understanding Lease Terms to Avoid Surprises

This is where you need to become a detail-oriented detective. Failing to read the fine print is one of the most common and costly mistakes business owners make. Before signing anything, make sure you fully understand every clause in the lease agreement. What are the exact monthly payments? Are there any additional fees for insurance, taxes, or late payments? It's also critical to know the terms regarding the end of the lease. What are your buyout options, and are there penalties for early termination? Look for a company that offers flexibility. Your business needs can change, and you want a lease that can adapt without locking you into a rigid, unforgiving contract.

Evaluating Equipment Quality and Support

The whole point of leasing is to get reliable, high-performing equipment in your kitchen. Ask potential leasing partners whether the equipment they provide is new or used. If it’s used, what guarantees do they offer about its condition and reliability? You need to know that the refrigerators will hold their temperature and the deep fryers will fire up during a dinner rush. Beyond the initial quality, find out what kind of support is included. Who is responsible for maintenance and repairs if a machine breaks down? A good leasing partner will have a clear support system in place to help you minimize downtime and keep your kitchen running smoothly. This ensures you can focus on your food and customers, not on faulty equipment.

Lease, Buy, or Finance: Which Is Right for You?

Deciding how to acquire essential kitchen equipment is one of the biggest financial choices you'll make for your restaurant. The three main paths—leasing, buying outright, or financing—each come with their own set of benefits and drawbacks. There’s no single right answer; the best option depends entirely on your restaurant's cash flow, long-term goals, and how much flexibility you need.

Buying equipment means you own it from day one, but it requires a significant amount of upfront capital. Financing breaks that large purchase into manageable payments, but you’ll pay interest over the life of the loan. Leasing, on the other hand, acts like a long-term rental, giving you access to the equipment you need for a fixed monthly fee without the commitment of ownership. Thinking through the total cost, impact on your cash flow, and your business's future plans will help you land on the perfect strategy for your kitchen.

Comparing the Total Cost of Each Option

When you look at the numbers, it’s a classic case of paying now versus paying later. Buying equipment outright has the highest initial cost but is often the cheapest option in the long run since there are no interest charges or recurring fees. Leasing is the opposite; it can save you a lot of money upfront, which is a huge advantage when you're just starting out. However, even though the initial cost is low, you might pay more in total over time because of all the monthly payments and interest.

Financing sits somewhere in the middle. You’ll make monthly payments that include interest, so the total cost will be higher than buying with cash. The key is to calculate the total cost of ownership for each scenario. For a lease, add up all the monthly payments. For financing, add the principal and total interest. This will give you a clear picture of what each piece of restaurant equipment will truly cost your business over time.

How Each Choice Affects Cash Flow and Taxes

Your cash flow is the lifeblood of your restaurant, and how you acquire equipment directly impacts it. Leasing is often the winner for preserving cash. Because it requires little to no down payment, leasing helps small and medium-sized restaurants keep their money available for other important needs like payroll, inventory, or marketing. Plus, the money you pay for the lease can often be written off your taxes as an operating expense, which can be a nice perk.

Buying equipment ties up a large amount of cash immediately, which can be risky for a new or growing business. Financing is a good alternative, as it allows you to get the equipment you need while spreading the cost over several years. With restaurant equipment financing, you can also take advantage of tax deductions for depreciation and interest payments, though it’s always best to consult with an accountant to understand the specific tax implications for your business.

Aligning Your Decision with Long-Term Goals

Think about where you see your restaurant in the next three to five years. Are you planning a major expansion, or are you focused on maintaining a stable, established business? Your long-term goals should guide your equipment strategy. Leasing helps new restaurants or those looking to grow get the equipment they need without a large initial investment. It’s also a great choice if you want to stay on the cutting edge, as you can easily upgrade to newer models when your lease term ends.

If you’re equipping your kitchen with workhorses like deep fryers or refrigerators that you plan to use for a decade or more, buying or financing makes more sense. You’ll build equity in your assets, and once they’re paid off, they’re all yours. This approach is often favored by established restaurants with predictable revenue and a solid capital base. Ultimately, the right choice is the one that supports your financial health and business vision.

Common Leasing Mistakes to Avoid

Leasing can be a fantastic tool for getting your restaurant up and running, but a few missteps can turn a smart move into a costly headache. Being aware of the common pitfalls ahead of time is the best way to protect your business and your budget. Think of it like prepping your mise en place—a little work upfront saves you from a scramble during service. By avoiding these frequent mistakes, you can ensure your leasing agreement truly serves your restaurant’s needs and helps you grow without any unwelcome surprises. Let’s walk through what to watch out for.

Choosing the Wrong Leasing Partner

Not all leasing companies are created equal, and picking the wrong one can feel like getting stuck with a bad business partner. Before you sign anything, do your homework. Research and compare reputable leasing companies to find one that offers favorable terms and genuinely supports your business goals. Look for transparency in their contracts, positive reviews from other restaurant owners, and a willingness to answer all your questions. A great partner will feel like an extension of your team, helping you get the restaurant equipment you need on terms that work for your cash flow, not against it.

Overlooking Contract Pitfalls and Hidden Fees

This is easily the most common—and most expensive—mistake you can make. It’s tempting to skim the contract and just sign on the dotted line, but failing to read the fine print can cost you dearly. It's crucial to understand all the costs involved, not just the monthly payment. Look closely for hidden fees related to insurance, late payments, maintenance responsibilities, and end-of-lease buyout options. Ask direct questions about the total cost over the lease term. A clear and upfront agreement is the sign of a trustworthy leasing company.

Selecting the Wrong Equipment for Your Needs

Leasing gives you access to great equipment, but it’s only a good deal if it’s the right equipment. Don’t get pressured into leasing a larger, more expensive freezer than you need or a specialty oven that doesn’t fit your menu. Be clear about your operational needs and kitchen workflow. Ask whether the equipment is new or used and what guarantees the company provides about its reliability. Sometimes, leasing isn't the best route for every item. For core pieces you’ll use for years, exploring restaurant equipment financing to own the asset might be the smarter long-term play.

How to Get Approved for an Equipment Lease

Getting approved for an equipment lease is often more straightforward than securing a traditional bank loan. Leasing companies are primarily concerned with your ability to make consistent payments. If you come prepared with the right information and a clear understanding of your needs, you can move through the process quickly and get the equipment you need to run your kitchen.

Credit and Documentation Requirements

When you apply for a lease, the leasing company will review your restaurant's financial health to ensure you're creditworthy. They need to feel confident you can handle the monthly payments. You’ll generally need to provide basic documentation, such as business financial statements, recent tax returns, and a list of the equipment you want to lease. For new restaurants, a solid business plan and good personal credit can make a big difference. The main goal is to show that your business is stable and has a clear path to profitability, making you a reliable partner for the lease.

The Application and Approval Timeline

One of the best parts of leasing is how quickly you can get approved. Unlike traditional loans that can take weeks, many equipment leasing companies can approve your application in just a day or two. The process is designed to be efficient so you can get your kitchen up and running without delay. For example, you can complete a restaurant equipment financing application in under five minutes, with a decision typically coming back within 24 to 48 hours. This fast turnaround means you can get that new freezer or deep fryer into your kitchen and start generating revenue almost immediately.

Tips for a Stronger Application

To set yourself up for success, start by researching reputable leasing companies that have experience in the restaurant industry. Once you have a few options, compare their terms carefully. The biggest mistake business owners make is failing to read the fine print, which can lead to unexpected costs. Make sure you understand the total cost of the lease, not just the monthly payment. Having all your financial documents organized and ready before you apply will also help streamline the process. A well-prepared application shows you're a serious and organized business owner, making you a much more attractive candidate for approval.

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Frequently Asked Questions

What happens if my leased equipment breaks down? This really depends on the fine print in your lease agreement. Some leases include a maintenance package where the leasing company is responsible for repairs, which can be a huge relief during a dinner rush. Other agreements place the responsibility squarely on you. Before you sign, make sure you understand who pays for repairs and if there are any restrictions on which technicians you can use. This is one of those details that seems small but can save you a lot of stress and money.

Is leasing a good option if my restaurant is brand new? For new restaurants, leasing can be a fantastic strategy. The biggest advantage is that it protects your cash flow. Instead of spending a huge chunk of your startup capital on equipment, you can get everything you need for a manageable monthly payment. This frees up your money for other critical expenses like marketing, inventory, and payroll, giving your new business the financial breathing room it needs to get established and grow.

What's the biggest difference between a capital lease and an operating lease? The easiest way to think about it is ownership. An operating lease is essentially a long-term rental; you use the equipment for a set period and then return it. It’s great for technology that changes quickly. A capital lease is structured more like a rent-to-own agreement. The terms are usually longer, and the goal is for you to own the equipment at the end, often for a buyout price as low as one dollar.

Can I end my lease early if I no longer need the equipment? Ending a lease early is rarely simple or cheap. Most lease agreements are binding for the full term and come with significant termination fees if you try to break the contract. These fees can sometimes equal the total of all your remaining payments. Because of this, it’s incredibly important to be confident that you’ll need the equipment for the entire lease period before you commit.

Will leasing equipment affect my ability to get other business loans? Yes, it can. When you apply for a loan, lenders will look at all your existing financial obligations, and your monthly lease payments are considered a form of debt. This will be factored into your business's overall debt-to-income ratio. However, since leasing often has less stringent approval requirements than a traditional loan, it can be a good way to acquire assets without using up the borrowing power you might need for other investments, like an expansion or renovation project.