Why Businesses Lease

The following list outlines some of the more common reasons companies choose to lease rather than purchase needed new equipment.

ü	To better manage cash flows
ü	When the business has plans to grow or expand
ü	When there is a shortage of cash or borrowing capacity
ü	When a planned equipment replacement schedule is preferred
ü	When the funds can earn a better return elsewhere in the business
ü	When speed or convenience of the application process is important
ü	When additional operating expenses will reduce taxable income
ü	When leasing will improve the company's financial ratios
ü	When borrowing rates are low and expected to increase
ü	In an inflationary economy

For help deciding if leasing is the right choice for your next equipment purchase, go to our To Lease or Not to Lease page.

If you have questions regarding the reasons businesses lease Contact Us.