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What are the advantages of leasing?

  • Conserves Cash:  Leasing provides 100% financing. Capital can be conserved and used to finance other projects or activities.
  • Access to Capital:  Leasing does not impact existing credit lines – e.g. an existing bank operating line, thereby providing another source of capital.
  • Budgeting:  With fixed (monthly, quarterly, annual) payments, cash flow is more predictable making budgeting easier.
  • Certainty of payment:  The interest rate and payments are known for the term of the lease regardless of fluctuations in market interest rate.
  • Protects against obsolescence:  Equipment can be returned at the end of the lease and replaced with updated equipment.
  • Flexibility:  There are numerous ways to structure lease payments to meet the particular requirements of the lessee.

Last Updated:  August 5, 2020