When you need new equipment, facilities or vehicles to make your business operate better, sometimes buying isn’t the best option. There are many benefits to leasing through State Bank of Cross Plains: 

Equipment Leasing Today

Businesses today can get all their equipment leasing needs met at their local bank. Our leases are relationship-based, not transaction-based. No longer are there large fees and penalties around each corner. Businesses are treated fairly.

Leasing through your local bank makes sense. Local banks are at the forefront of providing businesses with capital to grow and expand. Leasing builds on our commitment to provide you with the financial tools you need to succeed.

80% of all businesses use equipment leasing today to acquire equipment, and almost any type of equipment qualifies for a lease. If your business is considering a lease for equipment, talk to a commercial lender about the common sense options available.

Tax Lease vs. Capital Lease

A tax lease is structured to provide the leasing company with equipment ownership, and along with it all depreciation benefits. In return, your lease payments may be fully deductible. The documentation for a tax lease is designed to conform to all related guidelines.

A capital lease, also known as a finance lease, is structured to pass all ownership benefits to you including depreciation. Only the interest portion of your lease payment is deductible, along with your depreciation expense. Such leases commonly have a $1.00 purchase option at expiration.

For counsel and guidance, we recommend you discuss your specific situation with your tax advisor to assess which lease best fits your needs.

Contact Us about Leasing

Pros and Cons of Leasing vs. Buying Business Equipment

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Leasing Options

The popularity and growth of leasing is in large part due to the wide variety of available lease options. These include:

  • 100% Financing: No Down Payment Required
  • New Or Used Equipment
  • Variable Payment For Seasonal Customers
  • Fixed Rate For The Lease Term
  • Can Be Structured To Meet Tax Objectives

Accordion Feature

Only from your local bank:

We offer an accordion feature that allows for an increase or decrease in payment during the lease term depending on need for tax shelter. Talk to a commercial lender for details.

The Real Advantage

We know you, and we know your business. We already have an established, trusted business relationship, and we understand your objectives when you lease. Unlike other traditional leasing companies, we never charge termination or prepayment penalties should you need flexibility during the term of your lease. In addition, coordinating all your banking and equipment financing activity with one bank is convenient and saves you valuable time. 

Financial benefits of leasing

  • Get the full value of the equipment without the full price
  • Take advantage of timely deals
  • Reduced maintenance costs
  • Customized payment schedules to match cash flow patterns
  • Balance sheet improvements

Tax advantages of leasing

  • Expense deduction benefits
  • Extra benefit for year-end acquisitions due to IRS depreciation deduction rules*

Want to discuss how leasing can impact your business? Contact our Commercial Banking team for more information on leasing:

Call (855) 256-7328 or contact us online:




The IRS isn’t specific on what differentiates a true lease from a conditional sale. Each case is decided based on its own circumstances. Generally, a transaction is considered a true lease if you follow a few simple guidelines. The following points are not necessarily a comprehensive listing of IRS guidelines for leasing, but will provide a general idea of the areas looked at in determining whether a transaction is a lease rather than a conditional sale.

  • The term of the lease shouldn’t be longer than the property’s economic life
  • Your lease payments can only amortize the value of the equipment that is actually used, not necessarily its total value. The leasing company needs to demonstrate an appropriate level of risk for the property from the beginning to the end of the lease
  • If you decide to buy the equipment at the end of the lease, you can’t pay less than its fair market value
  • The leasing company must expect a financial return from the lease beyond the inherent tax benefits of ownership
  • You may not loan the leasing company the funds or guarantee the debt used to acquire the leased equipment