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Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as equipment leasing. Equipment leasing is used to reduce cash requirements for a startup by leasing the equipment rather than buying it.\xa0 An equipment leasing company owns the equipment and uses it as collateral for buying the equipment and then charges the startup a monthly rental fee. There are two types of leasing. The Finance Lease (also called the Capital Lease) and the Operating Lease.\xa0 The Finance Lease is a long-term arrangement in which the startup is required to pay the lease rent until the end of the contract, which is usually the life of the asset.\xa0 The Operating Lease is for a shorter period of time and is often cancelable.\xa0 Providers of equipment leasing must have a license and cannot hold or offer real estate. The lease period cannot be fixed for less than three years, except for IT and computer equipment. Leased equipment appears as an expense on the income statement rather than on the balance sheet, which would reduce the startups\u2019 liquidity. Over the long term, the cost of the asset will be higher than that of an outright purchase. It\u2019s best to look for a closed-end lease without a balloon payment at the end.\xa0 An open-end lease requires you to pay the difference between the value of the equipment and what you\u2019ve paid for it so far. Equipment leasing works best for cash- flow management when you have a long-term need for the equipment. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group