1.  Leasing is flexible. Companies have different needs, different cash-flow patterns, and different streams of income. For example; start-up companies may have very limited cash and limited debt lines. Mature companies may have other needs; to keep debt lines free; to comply with debt covenants and avoid committing to equipment that may be obsolete quickly. Leasing can overcome any budget restrictions

2.  Leasing is practical. Get the equipment that you need now. This new equipment will generate revenue, so pay as you go. Traditional financing may require a long and tiresome experience after submitting tax returns, financial statements, interim statements, etc. Leasing usually requires only basic information for a quick approval.

3.  Leasing is cost effective. Equipment is costly, and what better way to pay for it; today’s equipment with tomorrow’s dollars. This is a practical way to hedge against inflation. Also, by utilizing the latest in equipment, downtime and equipment obsolescence is minimized. The latest in equipment is usually the most productive and efficient.

4.  Leasing has tax advantages. Rather than deal with depreciation schedules and other tax related issues, business owners can simply make a lease payment and deduct it as a business expense.

5.  Leasing can conserve operating capital. Leasing keeps you bank lines of credit open. Leasing equipment does not require large down payments like traditional financing. With other advantages, such as off-balance-sheet financing, leasing can help a business owner better manage his balance sheet.

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