By: Stefanie Galeano-Zalutko
The awards and personalization industry is expanding quickly in both size and scope, exposing transitional hurdles like operational complexity and productivity strain along the way. As both new and veteran businesses face diverse financial challenges amid mounting pressure, they are turning to lenders for support.
With the cost of essential operating equipment on the rise, the Equipment Leasing and Finance Association (ELFA) says that approximately 82% of U.S. companies rely on some form of funding—whether loans, leases, or lines of credit—to make necessary business investments. The equipment leasing and finance industry continues to grow, with Allied Market Research projecting it to rise from $1.2 trillion in 2022 to $3.1 trillion in 2032.
Texas-based Ascentium Capital offers a unique combination of bank-grade cost of capital and fintech-level execution. As a division of Regions Bank, qualified Ascentium customers benefit from true bank pricing, stability, and balance sheet strength rather than higher-cost nonbank capital.
“At the same time, Ascentium operates on a modern equipment-finance-specific technology platform. This allows retailers to access bank capital without traditional bank friction,” says Craig Colling, senior vice president and core vendor channel leader at Ascentium Capital.
While traditional banking institutions account for the lion’s share of equipment financing and business funding at 55% to 65%, independent and specialty lenders continue to rise in popularity. This is especially true as the financial landscape evolves rapidly in response to market shifts and customer needs.
According to Carey Kroll, senior account manager at Geneva Capital LLC, specialized equipment-financing companies (like Geneva) focus on funding initiatives in niche industries and tend to cover more ground than traditional banks, from loans and leases to start-up and working capital. Like other lenders, the company serves businesses of all shapes and sizes, from home-based start-ups to large-scale manufacturers, with fewer restrictions.
“Banks are not in the business of taking excessive risks. As such, their programs are subject to change as economic conditions falter. For example, as the Federal Reserve raises or lowers the prime rate, interest rates will increase or decrease, impacting your business outside of your control,” says Kroll.
“The opposite is true for leasing companies—they take 100% of the interest rate risk. Therefore, the payment on your lease will never change during its term, regardless of interest rates and inflation,” she continues.
In the following Q&A, Colling and Kroll share their insights on leasing and owning equipment.
Q: What are the pros and cons of leasing equipment?
Colling: The value of leasing lies in alignment, not convenience. Leasing preserves capital, aligns cost with useful life and revenue, enhances flexibility, and often provides tax and accounting benefits. On the contrary, leasing requires clear understanding of structure and end-of-term options. Take into consideration there are potentially higher total costs if flexibility is not needed.
Q: What’s the biggest difference between leasing and owning equipment for a retailer new to the decision? Is it more beneficial for a business to own or lease equipment?
Kroll: There is no right answer that universally applies to all customers, as it’s dependent on individual circumstances. With both lease and loan options, the process, cost, and terms are [relatively] the same. It’s really a slight tweak to the structure that helps customers determine how to write off the equipment for income tax purposes. Leasing has a lower monthly payment because of the final balloon payment deferred to the end of the term, while a loan has a slightly higher monthly payment because there is no payment deferred to the end. Lease options allow the business to write off monthly payments as a rental or operating expense. In contrast, traditional financing allows the full cost of the equipment to be written off during the year it’s acquired via depreciation, or Section 179. We recommend consulting with a trusted tax adviser to determine which route is best for one’s unique situation.
Q: How important is it to understand a lease structure from a tax and accounting perspective?
Colling: It’s extremely important. Different structures affect expense recognition, balance sheet, and tax treatment. Retailers should understand how a structure benefits their business from both a cash flow and accounting perspective, and confirm details with their accountant before committing.
Q: What business situations or goals most often point toward leasing rather than buying?
Colling: Leasing is most appropriate when a business is focused on preserving cash, managing risk, and maintaining flexibility. It tends to align well when the useful life of the equipment matches a defined revenue period, especially in technology-driven environments where upgrades are expected every few years. Leasing allows businesses to align equipment costs with the revenue the equipment generates, rather than tying up capital in assets that may lose competitive value before they are fully depreciated.
Kroll: Leasing is especially popular among start-ups and those with tight cash flow because payments are lower. It’s also great for more established businesses that need write-offs but aren’t able to take the full write-off in the year of purchase.
Q: How should order volume and job frequency factor into the lease-or-buy decision?
Colling: Order volume and job frequency are key drivers of return on investment. High-utilization equipment that produces consistent revenue can justify longer-term ownership structures, such as loans or capital leases, when the useful life of the equipment comfortably exceeds the financing term. For lower or more variable workloads, leasing often provides better alignment between payments and revenue cycles, reducing downside risk.
Q: What role should projected growth play in deciding whether to lease or own?
Colling: Projected growth should heavily influence financing structure. Growth introduces uncertainty; therefore, flexibility becomes valuable. Leasing or shorter-term structures help prevent businesses from being locked into capacity, technology, or payment obligations that no longer fit as the business evolves. Financing should support where the business is going, not constrain it.
Q: What signs suggest a retailer is in a strong position to purchase equipment outright?
Colling: Retailers are generally well-positioned to purchase outright when they have excess liquidity beyond operating and growth needs; predictable, stable cash flows; and equipment with a long useful life and low technology risk. Even in these scenarios, many businesses still choose bank-backed loans over cash purchases to preserve capital and optimize returns.
Q: How do cash flow, working capital, and inventory needs affect the right financing choice?
Kroll: If a business is turning away customers or outsourcing a lot, production can’t keep up with orders, or lead times are getting longer, then it’s definitely time to consider a purchase—whether that’s via cash or financing.
Colling: Cash flow management is central to the lease-versus-buy decision. Equipment competes with inventory, payroll, and growth initiatives for capital. Financing allows businesses to preserve working capital, smooth cash outflows, and maintain liquidity during seasonal or variable periods. Cost of capital is paramount. Bank-owned lenders typically offer meaningfully better rates and terms than brokers or independents, which directly benefits cash flow over the life of the agreement.
Q: Does leasing equipment make sense for retailers who need frequent upgrades?
Colling: In personalization, technology is often the competitive edge. Leasing makes sense when equipment innovation directly improves speed, quality, or capability; customer demand drives ongoing upgrades; and competitive advantage depends on staying current. Leasing converts rapid innovation cycles into predictable operating costs rather than stranded capital investments.
Kroll: Lease financing is a good option for equipment that frequently needs to be updated, as the return option at the end of the term can make the process easier and reduce costs. It’s important to select a term that does not exceed the equipment’s life.
Q: What is covered during a lease, especially as it relates to equipment maintenance and repair?
Kroll: All maintenance and repairs are handled by the user and not covered by the financing. No different from car repairs and maintenance being your responsibility rather than the lender’s. Any warranty that comes with the purchase of equipment will still be valid when the equipment is financed.
Q: When it comes time for businesses to consider loans versus leases, what differentiates business models like yours from traditional banks?
Colling: There are three core differentiators. First, customers benefit from Regions Bank’s balance sheet, which is critical to long-term cash flow. In addition, Ascentium has technology-driven speed and experience. The company was a technology-forward platform prior to the bank acquisition, and Regions Bank has continued to invest heavily since. Results include the most approvals in under four hours, approval to documents in minutes, application to funding often in hours or less than one business day, and industry-leading application-only limits (no financial or bank statement requirement), up to $500,000, depending on the equipment supplier/assets being financed. Moreover, Ascentium has deep manufacturer and dealer partnerships, which enable special financing programs that improve close rates and customer outcomes.
Kroll: Flexibility in terms is a big draw. The primary concern of a bank is to protect its interests, which is why most require 10% to 20% down to finance business equipment. On the contrary, a leasing company’s main goal is to generate cash flow, so they are highly creative in finding the easiest way for a business to get new equipment. In addition, banks have a lending threshold with each borrower. If you get into a certain amount of debt that the bank deems a risk, they may choose to end business with you or refuse financing. While leasing companies must deal with this as well, they only consider the equipment finances for that customer [in the approval process]. So, you can retain access to capital with your bank without tying up credit lines. Another consideration is that when a business chooses financing with Geneva Capital, our company files a UCC Financing Statement Amendment with the Secretary of State, indicating the customer’s location and that the leasing company owns the equipment. We designate only the new equipment as collateral. Other lenders will see that only the leased equipment is under consideration and will still be willing to work with you. In comparison, under a traditional bank loan, all property is stated—the new equipment plus your entire business. With this blanket UCC in place, other banks will not be willing to provide overlapping financing to you.
Q: Why does working with an industry-specific lender matter?
Colling: Lenders that understand the industry and partner with manufacturers and dealers can offer preferred or promotional financing programs, deferred payment options, seasonal or step-up payment structures, and prepayment to the equipment seller before the equipment is shipped or installed. These programs exist because the lender understands equipment life cycles, margins, and operating realities within the industry.
Q: What are some key things a retailer should ask a lender before signing a lease or financing agreement?
Kroll: What does the application process look like, and how long does it take? What terms can I expect? Will it be a hard or soft credit pull? Will this show up on my personal credit report?
Colling: Understanding the full economic picture, not just the monthly payment, is essential. Retailers should ask if it’s a lease or a loan and how ownership works at the end. What assumptions are being made about the equipment’s useful life? Are there required down payments? What is the rate/cost of capital for the full term? If it is a lease agreement, what is the residual structure, how is it calculated, and what residual options are available? What documentation or origination fees apply? Is there interim rent being charged between funding and when my first payment is due, and how is this charge calculated? Are there early-payoff or prepayment penalties?
Q: Is your clientele comprised of small, medium, or large businesses?
Kroll: We’ve worked alongside businesses of all shapes and sizes, from small, home-based mom-and-pop shops to Fortune 500s, nonprofits, and universities.
Q: Are most businesses new ventures or established ones?
Kroll: We work with brand-new companies and businesses that have been around for over 100 years! In 2025, 30% of our customers had been in business for less than two years.
Q: Do certain-sized businesses finance equipment more often than others?
Colling: Yes, but for different reasons. Small businesses finance to conserve cash and manage risk. Midsized businesses finance to optimize cash flow and capital efficiency. Large businesses finance because it’s often the most disciplined capital-allocation strategy. Across all sizes, financing has become an intentional financial decision, not a reactive one.
The most successful retailers focus on the cost of capital, flexibility, speed to funding, and alignment with useful life and growth. Ascentium’s model, bank-backed capital paired with a high-performance technology platform, was designed specifically to support equipment-driven businesses at every stage of growth.
Q: What changes have you seen during the past three to five years impacting financing in the awards and personalization industry?
Colling: Over the past several years, we’ve seen shorter technology life cycles; more frequent, smaller equipment purchases; increased demand for payment flexibility; and greater use of deferred and seasonal payment plans. Retailers are financing more strategically—not just out of necessity.
Q: With current inflation and interest rates, how does that impact business decision-making in financing/leasing necessary equipment?
Kroll: The last five to six years have been tumultuous for several reasons: COVID-19, inflation, tariffs, administration and policy changes—the list goes on and on. I think more than ever, these changes point to financing as a valuable resource for businesses, as it allows them to grow while keeping cash on hand for unexpected expenses. The interest rate topic has calmed over the last year as we’ve seen slight decreases in the prime rate, but it’s important to remember that the rates we’re seeing right now are quite low by historical standards.
Colling: Higher cost of funds has increased focus on the cost of capital, payment predictability, and flexibility. Well-structured, bank-backed financing still supports growth, particularly when new equipment generates revenue quickly and improves margins.