Leasing is often the best use of cash and results in the highest
return on investment. Leasing offers several cash-related benefits:
- Conserves cash and maintains liquidity.
- Preserves lines of credit.
- Provides a hedge against inflation.
- Fits easily into budgets.
- Lowers total cost of ownership.
Protection Against Obsolescence
Leasing allows for equipment upgrades while cash purchases do
not. Leasing also maintains competitive edge with the ability
to use the latest technology.
- Leasing makes it easy for customers to
add on as their needs grow.
- Leasing offers options such as equipment
swaps, lease rollovers and coterminous upgrades to match equipment
capacity to changing requirements.
- If equipment is owned, issues such as
capital acquisition processes, market value versus book value,
and access to secondary markets for disposal make it much more
difficult to be responsive to a changing business climate.
- Leasing provides for flexible terms.
Lease payments are fully deductible operating expenses for tax
purposes, so the actual cost of the lease is only a fraction
of the payment. Customers may also be able to avoid the Alternative
Minimum Tax which can result from owning rather than leasing