Leasing is flexible. Companies have many needs, different cash flow patterns, and different - sometime irregular - streams of income. Leasing can help to keep debt lines free, to comply with debt covenants, and to avoid committing to equipment that may quickly become obsolete. Therefore, your business conditions - cash flow, specific equipment needs, and tax situation – may help define the terms of your lease.
Moreover, a lease provides the use of equipment for specific periods of time at fixed rental payments. This allows you to be more flexible in the management of your equipment.
Leasing is practical. By leasing, you transfer the uncertainties and risks of equipment ownership to the lessor, which allows you to concentrate on using that equipment as a productive part of your business.
Leasing is cost effective. Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs.
Tax Advantages: When leasing, you, the lessee can deduct the lease payment as a business expense. This allows you to keep your lines of credit open and also keeps you from tying up cash in equity.