Benefits of Leasing

Leasing promotes cash flow

• Cash flow impact is immediate because monthly lease payments are a fraction of the total equipment purchase cost. 

Leasing preserves important credit sources

• Leasing keeps the credit lines of a business open to meet other needs.  Purchases, in contrast, dissolve equity.

Leasing preserves operating capital

• Leasing frees up working capital for adding inventory, raw materials or other similar needs.

Leasing offers fixed rate financing

• Budgeting is easier and more predictable with fixed payments.

Leasing promotes faster return on employed capital

• Businesses realize a return on their employed capital with a lease sooner and much faster than is possible with large cash outlays.   

Leasing provides a hedge against inflation

• Leasing allows astute business people to leverage the time value of money.

Leasing provides flexibility

• Flexible end-of-lease options let a business take ownership of the equipment, refinance or upgrade.

Leasing offers tax advantages

• True lease arrangements can provide offer operating expense classifications.