To Conserve Cash
 Flow
A primary reason most  businesses lease is to conserve cash so they can invest  it elsewhere in their business rather than in assets that  depreciate.

It compliments your normal short term bank lines of  credit.

To Avoid Payment in  Advance
Paying cash for equipment  that will be used for years is like paying an employee  for years of service - in advance. Leasing equipment is  like hiring employees. You pay employees a monthly wage  for work produced during a given month. Leasing provides  the same option by letting you pay for the use of a  product as it produces - over time.

Leasing Fits Your Budget
Leasing offers 100%  financing at a "fixed-rate-fixed-term", not the  short term note with a floating rate. No down payment nor  compensating balance is required.

Your acquisition of the use of the equipment may be  justified by comparing a low monthly payment to your  monthly expenditure for outside services, savings in  personnel cost, or even higher revenue allowed by the use  of the equipment. Often times "Leasing doesn't cost,  it pays"

To Hedge Against  Inflation
Leasing is inflation proof.  With no real capital investment you are paying for  today's equipment with tomorrow's cheaper dollars

For Tax Benefits
Lease payments may be fully  deductible operating expenses for tax purposes. So the  after tax cost of leasing is less than the total lease  payments.

Leasing allows you to pay for the use of equipment with  pretax dollars, instead of drawing on past profits or  working capital

T o Use the Equipment
Operating profits come from  the use of equipment, not ownership of it. Leasing allows  payments to be made from the revenues generated by the  leased equipment. At your option, you may purchase the  equipment at the end of our Lease/Purchase agreement.

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