A start-up is a new business that has moved past the planning stages and is about ready to open its doors or has just barely opened its doors. For the first three years, the business is termed “new”. The start-up faces many challenges during this period including financially. Banks typically consider the businesses to be high credit risks and establish higher payments for loans with strict conditions. However, the need for computers and other machinery might outweigh the loans that the bank is willing to provide. What can the cash-strapped business owner do? Equipment leasing may be the answer. Equipment financing, or the option to lease the equipment necessary to run the business, is a convenient and affordable way for the new business to obtain the equipment and supplies necessary to become operational. The steps necessary for arranging the lease usually involve verifying the establishment of a business checking account, the filed business name, and a telephone listing. Guarantees from the owners, a completed business plan, and other proof that the business is legitimate are often necessary. The lease provides the start-up business owner with the funding necessary to purchase the equipment it needs at the fair market value of those supplies. There are a number of important advantages to the start-up when equipment leasing is chosen as the financing option. The chance to get equipment without paying cash upfront is an obvious benefit for the start-up with limited capital. Another important benefit is the ability to keep the lines of credit open for those emergencies and costs that crop up as business gets underway. The lease payments are considered a business expense and are considered a deduction. Taxes can be deferred and then paid in small installments along with the monthly lease payment. When the time comes to upgrade equipment and exchange it for newer models or more efficient machinery, equipment financing offers an important advantage. Rather than selling old, used machines and then spending the fledgling business’ limited cash to buy machines, equipment leasing allows the business to return the previously leased machines in exchange for the latest models. Ongoing maintenance and any needed repairs to equipment present a significant financial investment, but leased equipment is often maintained as part of the lease agreement. These savings can be life-saving for the start-up. For the newly established business, the benefits of low short-term equipment costs, open credit lines, tax savings, and convenient equipment upgrades can mean the difference between a successful start and a period of struggle and frustration. Equipment financing is an important tool to be utilized by the owner of a start-up business.