Top Ten reasons why companies lease

There are many reasons why companies lease equipment. Equipment leasing provides flexibility and protection against technological obsolescence. Leasing allows a company to better match cash outflow with revenue productions through the use of equipment. Leasing conserves valuable working capital and bank lines.

Purchasing Power

Equipment lease financing allows the lessee to acquire more and/or higher-end equipment.

Lease to Conserve Capital

They lease because they can make more money from what they buy than what it costs them, finance costs included. And they lease so they can pay while they use it instead of before.

Asset Management

A lease provides the use of equipment for specific periods of time at fixed payments.

Service Additions

Many lessees choose to structure their leases to include installation, maintenance and other services, if needed.

Upgraded Technology

Leasing provides companies with the ability to keep pace with technology. The lessee can upgrade or add equipment to meet ever-changing needs.

100 Percent Financing

With equipment leasing there is rarely a deposit required. The term of the lease can be matched with the useful life of the equipment.

Tax Treatment*

Leasing offers the option of deducting 100 percent of the lease payment as a business expense.

Specialised Assistance

Lessors are specialists in equipment leasing & financing, and understand capital equipment markets.

Flexibility

There are a variety of leasing products available, allowing the lessee to customize a program to address needs and requirements – cash flow, budget, transaction structure, cyclical fluctuations, etc.

Proven Equipment Financing Option

There is a reason why every single FTSE 100 company and all of the major accountancy firms lease. It makes sound financial sense.

*All references to taxation treatment are subject to confirmation by your professional advisers.

Top Ten reasons why companies lease

Top Ten reasons why companies lease

Purchasing Power

Lease to Conserve Capital

Asset Management

Service Additions

Upgraded Technology

100 Percent Financing

Tax Treatment*

Specialised Assistance

Flexibility

Proven Equipment Financing Option

Author: First Business Finance