When does a lease make more sense than a purchase?

A lease can be the better option when you need flexibility or want to preserve capital. Shorter-term leases can help you stay current with equipment that evolves quickly. Lease payments generally require less upfront cash than a purchase. Leasing is useful for project-based needs where you expect to return the equipment at the end of use.

Commercial Equipment Leasing & Financing

Custom commercial equipment financing services

First Citizens provides commercial equipment loans and leases for transactions up to $100 million and more, with terms and rates tailored to meet the needs of middle market and large-cap businesses. Plus, we now have expanded lending options through Sixty-First Commercial Finance.

100% equipment financing

Cover your entire equipment purchase with financing that protects cash flow and keeps your business positioned to invest in growth opportunities.

Direct originations

Our direct originators build relationships with CFOs and business owners to help provide creative solutions to service their capital equipment financing needs.

Indirect originations

Our indirect originators build relationships with our peer banking partners, second-tier leasing companies and other external third-party origination sources.

Apply for a commercial equipment lease or loan

Connect with an equipment leasing and financing specialist

From the latest imaging technology to industrial forklifts, our competitive large-ticket equipment finance program is designed to facilitate flexible financing options for a wide array of commercial equipment and vehicles. Let our experienced financial providers help you meet your commercial equipment leasing and financing needs.

Domestic ground transportation

Financing to modernize or expand over-the-road tractors and trailers, specialty vehicles or heavy-duty vehicle fleets, including utility maintenance vehicles

Brown water marine transportation

Capital support for Jones Act tug and barge vessels and related dredging vessels

Manufacturing - discrete and process

Funding production equipment, automation, robotics, plant upgrades and systems through new CAPEX purchases or sale leasebacks

Construction and mining

Capital for medium- to heavy-duty construction equipment, fleet expansion and other construction technology projects

Warehouse facilities

Financing for automation, handing systems and facility enhancements

Renewable and power generation

Support for midstream energy infrastructure, primary and backup power generation equipment and other sustainable technology initiatives

Technology and telecommunications

Funding for networks, data infrastructure, cloud solutions and communications systems

Fair Market Value, or FMV, leases provide month-to-month equipment use with the option to return, purchase or renew at the end of the term.
Early Buyout Option, or EBO, leases offer lease-like structures that let you buy early under prearranged terms.
Terminal Rental Adjustment Clause, or TRAC, leases, or Split TRAC leases feature payment structures with residual adjustments designed for fleet operators.
Sale leasebacks create liquidity by leveraging existing equipment assets with either an off-balance-sheet structure or on-balance-sheet structure.

Capital leases transfer most risks and benefits of ownership to the lessee.
$1 purchase options provide a lease term that ends with the option to purchase the equipment for $1.
Term loans are secured by the equipment and repaid over a fixed schedule.
Equipment-based revolving lines of credit offer access to preapproved capital for equipment purchases or maintenance.

Sixty-First Commercial Finance

Sixty-First Commercial Finance, managed by First Citizens Institutional Asset Management LLC,D offers flexible and broad financing solutions to support middle market companies. We offer capital equipment financing from $5 million to $100 million with diverse coverage across both equipment types and industries.

Sixty-First Commercial Finance is a joint venture between Sixth Street's Asset Based Finance platform and First Citizens. We leverage the extensive experience and competencies of both institutions to provide more flexibility and support for your business.

How we're different

An independent finance company that's an alternative lender to traditional banks
Support from the same team of experts at First Citizens
Both traditional and nontraditional solutions available to offer flexibility as credit needs fluctuate

Benefits

Deep experience in asset-backed equipment lending
Ability to deliver structured, customized solutions to help you reach your goals
Full product suite consisting of loans, tax leases and progress payment construction financing
Quick and certain execution based on deep underwriting, industry and product knowledge

Industries we serve

Transportation
Construction
Marine
Manufacturing
Helicopters
Warehouse logistics
Renewable and power generation
Technology and telecommunication

Equipment financing helps protect cash on hand by spreading the cost of revenue-generating assets over time. With predictable, mortgage-style monthly payments, you can align expenses with the cash flow the equipment produces. Financing also allows you to match terms, amortization and any residual value to the useful life of the equipment—reducing upfront cash outlays and supporting long-term planning.

A lease can be the better option when you need flexibility or want to preserve capital.
Shorter-term leases can help you stay current with equipment that evolves quickly.
Lease payments generally require less upfront cash than a purchase.
Leasing is useful for project-based needs where you expect to return the equipment at the end of use.

An FMV lease can lower monthly payments because the equipment retains value at the end of the term. It also shifts the risk of obsolescence to the lessor and may improve cash-flow planning. When the lessor can use the tax benefits, those savings may be passed back to you through reduced payments. At the end of your lease, you can purchase the equipment at market value, renew the lease—often at equal or lower payments—or return the equipment based on your needs.

A term loan provides either fixed- or variable-rate financing secured by specific assets or a broader asset pool. You retain ownership of the equipment, including all tax benefits, but you also carry the risk of obsolescence. Term loans may fully amortize or include a balloon payment at maturity, depending on the structure.

Finance

Commercial Equipment Leasing & Financing

Let us help you fund your next business investment

Custom commercial equipment financing services

Apply for a commercial equipment lease or loan

Connect with an equipment leasing and financing specialist