Equipment leasing is a sort of financing in which you rent rather than buy the equipment entirely. You can lease expensive company equipment, such as machinery, trucks, and computers. The equipment is leased for a specified amount of time; once the contract expires, you can return it, renew the lease, or purchase it. When the leasing term ends, you do not own the equipment. When leasing equipment, you pay interest and fees, which are typically added to the monthly payment, just as with a business loan. There may be additional expenses for insurance, maintenance, and repairs. Equipment leasing can be far more costly in the long run than owning the equipment outright.