Leasing Could Be Just Right for Your Business

Leasing offers numerous benefits - 100% financing, accelerated tax write-offs, improved cash flow, access to modern equipment, and flexibility at the end of the lease term.

Titan Machinery Salesman with customer signing contract
Lower Payments

Lease payments cover only the portion of the equipment value to be depleted during the lease term, often resulting in lower lease payments compared to loan payments. Lower payments free up cash for other purposes within your business. Rather than money, a leasing company lends the use of equipment or machinery and you pay a periodic lease rental or payment. In essence, you only pay a usage fee for the equipment as it is used rather than pay interest on a loan. You typically treat a lease differently for tax purposes as well.


Less Taxing

Leases are classified as either true leases or conditional sales leases for tax purposes. With a true lease, you can deduct your full lease rental payment as an operating expense, rather than depreciating the asset. With a conditional sales lease, you take depreciation just as you would with a loan, while still benefiting from the traditional flexible financing offered in a lease.


Your Business Asset

You are responsible for making the lease payment and all applicable operating costs, such as maintenance, sales and property taxes, license, registration and insurance. In addition, if hour limits apply, you will be responsible for any excess usage charges beyond the agreed upon hour limits.



All leases have end-of-lease purchase options listed on the lease agreement. The most common purchase option is called a fixed purchase option (FPO). With an FPO, you may trade in at any time, or at the end of the lease, you may either purchase the equipment for the residual amount stated upfront or return the equipment to us. Purchase or renew only (PRO) – At lease termination, you can either purchase the equipment at a fixed amount stated upfront or renew your lease. While an FPO will give you a better tax deduction, a PRO lease will lower payments to improve current cash flow.

Flexible Benefits

Whether you plan to purchase, renew, or return the equipment at the end of the lease term, there’s a leasing option available to fit your needs. Equipment leasing is an excellent way to reduce costs, improve cash flow, avoid equipment obsolescence, free up capital, and gain tax advantages.


Titan Preferred Lease

Titan Machinery offers Preferred Lease options on hundreds of new and used farm equipment and construction equipment in inventory. If you would like to learn more about our Preferred Lease Program or to view a sample of the low payment & lease options available, click here