Commercial furniture leasing typically works through a third-party leasing company (not the furniture dealer). You choose products with your dealer, and the leasing company purchases them on your behalf. You make monthly payments over a fixed term — usually 36, 48, or 60 months — and at the end, you either buy the furniture for a residual value (typically $1), return it, or extend the lease.

Lease rates vary by term length and creditworthiness, but a common range is a rate factor of 0.025-0.035 — meaning for every $1,000 of furniture, you'd pay $25-35/month. On a $100,000 order with a 60-month lease, that's $2,500-3,500/month. Over the full term, you'll pay $150,000-210,000 for $100,000 worth of furniture. That premium is the cost of preserving cash flow.

The tax treatment is the main financial advantage: lease payments are typically fully deductible as an operating expense in the period they're paid, whereas purchased furniture must be depreciated over 7 years (or taken as a Section 179 deduction in the year of purchase, subject to limits). Consult your accountant — the math varies by situation.

When Leasing Makes Sense

Leasing is strongest for fast-growing companies that may outgrow their furniture in 3-5 years, businesses that need to preserve capital for operations, and companies in short-term lease spaces where long-term furniture ownership doesn't align with the real estate commitment. If you plan to stay in the same space for 7+ years and have the capital available, buying is almost always the better financial decision.