Should You Lease or Buy?

Lease Or Buy: The Decision Is Yours

There are many factors for a company to consider when making the lease or buy decision. However, the advantages of leasing, as listed below, are enough to make any company consider leasing to acquire equipment.
 

1. Leasing frees working capital for more productive uses since leasing provides up to 100% financing. This in comparison to 75-80% through other financing methods.
2. Leasing may cost less than other financing alternatives.
3. Leasing may provide a faster tax write off.
4. Leasing avoids restrictions often contained in loan agreements.
5. Lease payments may not appear as a liability on the lessee's balance sheet thus providing "off balance sheet: financing.
6. Leasing does not disturb present bank credit lines.
7. Leasing provides a hedge against inflation and obsolescence.
8. Leasing is more flexible in meeting the lessee's needs than conventional financing.
9. Leasing provides a new credit source.
10. Leasing provides fixed rate financing.
11. Leasing overcomes capital budget restrictions.