Loans, Financing & Leasing


We provide a comprehensive offering of financing and leasing options including lines of credit, equipment term loans, and letters of credit. However, through years of experience with the Small Business Administration (SBA), Wisconsin Business Development Corporation, Wisconsin Housing and Economic Development Authority (WHEDA), and many other government-sponsored agency programs, we have learned how to make maximum use of the attractive rates and terms extended by these agencies. From retailers to real estate development, we can find the opportunities many other banks miss.

Our business banking team has significant and proven experience that provides you with the best financial solutions for your business to improve cash flow, reduce tax liabilities and strengthen your balance sheet. 

  • Commercial Real Estate
  • Business Loans
  • Letters of Credit
  • PECFA Loans
  • SBA Loans
  • Construction Loans
  • Business Credit Lines
  • Land Development Loans
  • Commercial Leasing


Leasing can provide you additional benefits and flexibility that you don't get when you own your equipment, vehicles and facilities. It’s an excellent way to reduce costs, improve cash flow, avoid equipment obsolescence, free up capital and maximize tax advantages.

Leasing through your community bank provides you with competitive rates, a local and trust-worthy financial partner, excellent customer service, and only your community bank can protect you from unnecessary and costly fees that you could experience through other banks or finance companies. 


For businesses, the real value of equipment comes from operation – not necessarily ownership. Leasing through the State Bank provides you with competitive rates, a local and trust-worthy financial partner, excellent customer service, and only the State Bank can protect you from unnecessary and costly fees. Other advantages include:

Better Equipment

You can work with any supplier – local or national – to find the exact equipment you need. Once you negotiate the best price, we step in and take care of the financing.

Replace Equipment Sooner

With lease financing, you can replace your equipment regularly with state-of-the-art models and take advantage of the better fuel efficiency or faster production they offer. This becomes especially important for assets with relatively short economic lives, such as transportation equipment. A planned replacement cycle ensures access to reliable, low-maintenance equipment at all times.

Faster Business Decisions

Working with the State Bank, you can obtain approval more quickly than if you were purchasing the equipment. Typically, credit approval and paperwork are quick and easy, usually just 24 to 48 hours for smaller transactions. You can complete larger transactions in about a week.

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In addition to the many business and tax benefits you’ll gain by leasing, such as being able to replace your equipment sooner and lowering your taxes, leasing may also enable you to:

Spend Less for the Same Equipment

When you lease your equipment, you usually only have to pay a portion of the actual cost – you get the full value without paying full price. In addition, leasing may help you take advantage of special manufacturer pricing when it’s available, rather than when you’re prepared to purchase it.

Pay Nothing Down

Leases don't usually require a down payment. Instead, you only make the first lease payment. This will give you greater flexibility in choosing your equipment and leave you needed cash for other parts of your business.

Reduce Your Maintenance Costs

Older equipment usually costs more to operate. When you lease your equipment and update it regularly, you can always have reliable, low-maintenance equipment.

Control Your Cash Flow

You can match lease payment schedules to suit your needs – even if you have uneven cash flow patterns. Payment schedules can be customized based on a monthly, quarterly, semi-annual or annual basis, or even based on your selling season. You can skip or defer payments, or step them up as needed.

Improve Your Balance Sheet

With an operating lease, the equipment comes off your balance sheet and instead appears as an operating expense. This improves your financial ratios, such as debt-to-equity ratio, the current ratio (liquidity), and return on assets (ROA). Capital leases can offer you different benefits.

Create a New Lease Financing Source

A State Bank Leasing lease line will allow you to respond quickly to new equipment needs and leave your other lines of credit available for other business uses.

Avoid Price Increases

If rising prices are a concern, leasing can help by locking in your costs over the life of the lease.

Be sure to consult an accountant about which type of lease is right for you.

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In addition to the many business and financial benefits you can gain by leasing, one of the best reasons to lease equipment is that it can reduce how much you pay in taxes.

Expense Deduction Benefits

With owned equipment, you’re allowed to deduct depreciation and interest expenses from your taxable income, but not principal payments. And the depreciation deductions follow a schedule set by the IRS. For example, you can only take a half-year’s depreciation deduction for an asset in the first year you purchase it and place it in service.

With a lease, you can deduct your entire lease payment as an expense, which will allow you to write off expenses quicker. This shorter period means a larger deduction each year, lowering your taxable income and decreasing your taxes.

Extra Benefit for Year-end Acquisitions

If you’re planning on acquiring a lot of equipment at the end of the year, leasing can be an appealing alternative to purchasing because of IRS depreciation deduction rules. When more than 40% of your equipment is purchased during the last quarter of the tax year, a “mid-quarter convention” is applied and you can only deduct 1-1/2 months of depreciation for the equipment bought in the last quarter, even if you’ve been using it for the full three months. However, when you lease the equipment in the last quarter, you can deduct your lease payments as a business expense for the tax year.

Choosing the best lease option

Tax codes and decisions can be complex, so you should always follow IRS tax guidelines and consult with your accountant about the best financing alternative to lower your taxes.

Be sure to consult an accountant about which type of lease is right for you.

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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.

  1. The term of the lease shouldn’t be longer than the property’s economic life.
  2. 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.
  3. If you decide to buy the equipment at the end of the lease, you can’t pay less than its fair market value.
  4. The leasing company must expect a financial return from the lease beyond the inherent tax benefits of ownership.
  5. You may not loan the leasing company the funds or guarantee the debt used to acquire the leased equipment.
  6. You can’t furnish any part of the cost of the leased equipment, such as trade-ins or down payments.

Be sure to consult an accountant about which type of lease is right for you.



When you’re choosing a leasing partner, comparing more than interest rates will ensure that you get the best solution for your needs.

Equipment Purchase

If you’d like to purchase the equipment at the conclusion of the agreement, make sure your leasing terms mesh with your financing objectives. While not all leasing companies offer purchase options, State Bank Leasing solutions provide a range of options tailored to your needs.

Flexibility of the Terms

Leasing’s flexibility sets it apart from other forms of financing. You typically can adjust the length of term, frequency of payments, and the residual value of the equipment at lease end. State Bank Leasing solutions offer flexibility on all of these terms to fit your financial needs and how you expect to use the equipment.

Additional Costs

Some leasing companies include peripheral costs in the lease price, while others add on these costs later. Be sure to ask your provider how much of the costs associated with installation, shipping, computer software, licensing or other expenses can be included in the lease contract. With a State Bank lease, a portion of these added costs can be built into your lease to reduce your up-front costs.

Type of Lease

Leases may be structured so that equipment does not appear on your balance sheet, which can improve your business’s financial ratios. For tax purposes, true leases can be treated as a business expense, just as an electric bill is, and the entire lease payment can be tax deductible. Lease purchase programs provide tax benefits that mirror those for owned equipment. State Bank Leasing solutions include all types of leases. You should consult an accountant for advice on which type of lease is right for you, and we'll work closely with your tax consultant to identify the best options for your business.

Financial Strength of the Leasing Partner

Leasing companies with strong financial capacity can access funds at lower rates, which translates into competitive lease rates for you. Since State Bank Leasing solutions offers strong leasing terms. We also syndicate leases, and we act as a syndication agent for these transactions. We can fulfill all of your leasing needs – no matter how large or complex.

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1. Why would I want to lease equipment? 

Equipment leasing brings many benefits to your business – it’s an excellent way to reduce costs, improve cash flow, avoid equipment obsolescence, free up capital and maximize tax advantages.

2. What’s the difference between a lease and a loan? 

Rather than loaning you money to buy a piece of equipment, a leasing company lends the use of equipment or machinery and you pay a periodic lease rental or payment. In essence, you only pay a usage fee for the equipment as it is used rather than paying interest on a loan. Finally, you typically treat a lease differently for accounting and tax purposes.

3. What kind of equipment can I lease? 

Virtually any type of equipment, vehicles or facilities used by your organization may be leased. You can choose any make or model, new or used, available through any vendor.

4. Are purchasing discounts and selection assistance available for equipment? 

State Bank Leasing solutions offer one-source specification and pricing comparisons, volume purchasing discounts, equipment protection and selection assistance on transportation and material handling equipment.

5. What are my obligations for the equipment (such as insurance, taxes and maintenance) during the lease? 

You are obligated to pay the rentals in a lease, and must pay all taxes, insurance premiums and maintenance costs related to the equipment, throughout the term of the lease.

6. Can I upgrade the equipment or add equipment under a State Bank lease? 

Yes. In fact, the ability to easily upgrade equipment is one of the major business advantages of leasing. With a State Bank lease, you can set up a new contract to meet any upgrade needs. One or more of the components of the lease may be adjusted including term, residual, and rental payment to account for the cost of the upgrade and the additional life of the upgraded leased asset.

7. What costs would I incur before the lease ends? 

Generally, you are responsible for the lease payment plus operating costs, such as maintenance, sales and property taxes, license, registration, and insurance. There is occasionally a special usage fee built into the lease for certain types of equipment. This usage fee is agreed upon with our customer at the beginning of the lease term.

8. What happens if I want to change my lease or end my lease early? 

We handle changes and early terminations on a case-by-case basis. A State Bank lease is non-cancellable; therefore, you are fully obligated to make all payments under the lease over the entire lease term. However, we will work with you to make changes and terminations that your business requires.

9. What happens to the equipment at the end of the lease? 

At the end of the lease, you can purchase the equipment, return it, or renew the lease. All State Bank leases have end-of-lease purchase options, which vary depending on the type of equipment.

10. What procedures must I follow if I choose to return the equipment at the end of the lease? 

Simply notify us 90 days prior to the end of the lease term (or as indicated in the lease documents) that you will be returning the equipment. You should inspect the equipment to ensure that its condition is the same as when the lease was initiated, excepting normal wear and tear, and make any necessary repairs. Then, simply deliver the equipment to a specified location.

11. Are there any extra costs at the end of the lease? 

For transportation equipment, State Bank Leasing charges a remarketing fee based on a Terminal Rental Adjustment Clause (TRAC). Otherwise, there are no fees charged at lease end, provided the equipment is returned in the condition as stated in the lease.

12. Why should I choose a State Bank lease? 

Leasing through your community bank provides you with competitive rates, a local and trust-worthy financial partner, excellent customer service, and only your community bank can protect you from unnecessary and costly fees.

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