The Advantages of Leasing

1. Conserves working capital; leasing normally provides 100% financing.
2. Avoids use of short-term bank lines, conserving borrowing capacity for financing inventory, accounts receivable and other short term needs.
3. Provides intermediate-term financing, longer than most private placement.
4. Provides a new source of funds, often enlarging the pool of capital available to your company, which can be particularly attractive during periods of expansion or when "tight" money conditions exist.
5. Provides flexibility with regards to amounts financed, payment structures, and other terms.
6. Allows the lessee to trade the value of depreciation for lower effective interest rates.
7. Provides lower cost financing on larger equipment purchases, when the lessor can "leverage" the tax benefits.
8. Provides for the acquisition of needed equipment that had not been foreseen in capital budget planning.
9. Frees funds for ownership of appreciating assets such as real estate.
10. Allows for the payment of the equipment out of earnings rather than equity capital.