Benefits of Leasing

• The value of equipment is in its use not its ownership
• Payments remain fixed regardless of fluctuations in the market
• Customized solutions: leasing permits the matching of rental payments to revenue generated from machinery use
• Flexible end of term options

Comparison to Loan Financing

• The equipment itself is the “collateral”
• Funds are more accessible for equipment acquisition
• Flexible payment terms and fixed payment throughout the life of the lease.

Comparison to Cash Financing

• Owner’s capital is tied up in fixed asset
• Liquid resources remain in business to generate income
• Accessibility – businesses may not have the cash resources to acquire equipment