Advantages to leasing include conserving working capital, flexible payment plans, and tax advantages.
Leasing offers many important advantages over other financial methods:
- Added credit availability.
- Bank credit lines are not affected which allows bank borrowing capacity for other needs.
- Conserves working capital financing.
- Equipment leasing can finance 100% of the equipment cost, leaving precious working capital for other needs.
- Facilitates cash flow.
- Equipment leasing allows the equipment to be paid for from income that is generated from its use.
- In many cases, equipment lease payments can be treated as a fully tax deductible expense. (You should consult your CPA for your specific use.)
- The whole equipment leasing process is usually faster, simpler, and often less costly than other financing alternatives.