The Benefits of Leasing

Conserves cash: You can achieve a better return on their capital by investing in your businesses as opposed to paying for rapidly depreciating assets.

Overcomes budgetary constraints: Leasing allows you to acquire your products and services based on user-demand and therefore obtain immediate business benefit as opposed to having to wait for subsequent budget cycles.

Facilitates favorable accounting treatment and tax savings: You may be able to expense their acquisitions instead of capitalizing them, thereby maintaining accounting ratios that are so important to long term creditors. In addition, since lease payments may be tax-deductible, your tax liabilities may be reduced.

Defers expenses: Lease payments can be structured to start in a future fiscal period, thereby helping you overcome budgetary limitations while taking advantage of today’s technology to meet user-demand.

Administrative simplicity: By combining hardware, software and services into a single periodic payment, your internal accounting can be simplified.

Ease of budgeting: Technology refresh, in terms of upgrades and exchanges of equipment, can normally be achieved while keeping the periodic lease payment the same. As a result, you may not need to seek higher management approval for such decisions and the financial department sees a consistent expense line.

Matches expenses to revenue: The periodic lease payments may be structured to match your return on investment. This may include ramping-up the lease payments to coincide with the gradual profitability associated with business investments.