Most lessors earn profit through significant charges outside of the regular term rent stream, including interim rent, retained deposits, fees, lease extensions, non-compliant return charges, fair market value definitions, and end-of-lease buyouts for equipment that cannot be returned.

Are leasing companies profitable?

"While it has been generally recognized that the leasing field operates on a very thin profit margin, few of the more recent leasing companies have realized just how thin this margin actually is," Rollins explained.

Is leasing equipment a good business?

For short-term use, leasing is almost always the most cost-effective way for businesses to go. If you're using the equipment for three years or more, a loan or standard line of credit may be more beneficial than a lease.