An Equipment Lease is a long-term rental agreement for commercial equipment as defined by Section 38 of IRS code. Leases can be structured on almost any type of equipment, both new and used. Because the initial out of pocket cost to lease equipment is normally much less than buying it, this is an extremely attractive financing option for many business owners. Depending on how the lease is structured, the business owner (lessee) will have the ability to purchase the equipment at the end of the lease term, or return the equipment. BFC’s can make up 1 to 15 points by arranging lease transactions.