Leasing allows the customer to afford an equipment investment without a single, lump-sum expenditure. This means a sale can be made to customers who couldn't normally afford the cash sale price of the equipment, or who are at the end of their budget cycle.
An Operating Lease allows the customer to deduct the monthly lease payment as an operating expense, lowering the effective after-tax payment.
Leasing offers off-balance sheet financing and improves customer balance sheet appearance.
Leasing more effectively matches incoming and outgoing cash flows for the customer --improving overall business operation.
By improving cash flow with leasing, customers may use capital on hiring, R&D, expansion and other mission-critical business needs.
With Fair Market Value leases, customers have greater flexibility to trade-in, upgrade, or change the equipment to meet their needs.
It is not uncommon for bank loan agreements to fund only a portion of the equipment cost or require substantial down payments. Many loan agreements also contain restrictions requiring the customer to get the lender's permission before acquiring additional equipment or borrowing more money. Leasing rarely requires down payments and doesn't restrict future acquisitions.
Lease payments are little more than a line-item in the customer's monthly cost of operations. Leasing eliminates the hassle of depreciation schedules and accounting for equipment disposals.
