Capital Preservation
Leasing lets companies conserve their working capital, allowing them to allocate cash funds for other purposes. Cash tied up in fixed assets is no longer available to finance important profit-generating areas such as inventory, production, marketing, research and development, etc.

Credit Preservation
All businesses have access to limited credit lines at their bank. Operating lines, demand loans, mortgages and other term facilities must be kept within the bank's total exposure limit for that business. By using a third-party leasing company to finance equipment and machinery acquisitions, you are effectively opening new credit lines - credit lines that normally require no down payments and no outside collateral - while preserving your existing and future bank borrowing ability.

Easier Budgeting
Lease terms, payment streams, and purchase options can be tailored to meet most budgets. Skip leases and step-payment leases are also available to match a business' seasonal or anticipated cash flows. In addition, most leases are based on fixed rates so the customer is not susceptible to interest rate fluctuations.

Financial Efficiency
The revenues or cost savings generated by the use of new equipment and machinery can be used to pay the lease payments. Expenses are matched to the generated revenues - a sound business management principle. Leases are also taxed differently than bank loans, which may be beneficial to your business.

Flexibility
In addition to tailored payment streams, leases can be designed with different types of purchase options. Moreover, leasing your business assets often facilitates easier upgrades, add-ons, and trade-ups.