Mainly they lease to conserve capital…. They lease because they can make more money from what they buy than what it costs them, finance costs included. And they lease so they can pay while they use it instead of before. When companies lease they don’t need to wait to create the capital to purchase or acquire the asset. They use the lessor’s cash and let the productivity gains or cash savings generate the capital to cover the ongoing costs. Businesses which lease make fewer compromises on what they acquire and can generally afford to buy more.
*Controlling Cashflow -Spreading the cost creates instant cash flow benefits. Keeps cash in their bank when they need it most for core business activities
*Measurable return on investment – As the equipment is paid for at regular intervals, you can easily demonstrate return on investment from day 1 to their shareholders and directors
*100% Tax efficient – The lease finance payments are 100% tax allowable against profits, which means they can make their profits work harder for them
*Fixed monthly repayments