Preservation of Cash

They do not have to pay the entire amount up front and there is no large down payment or sales tax to pay in advance.

 Preservation of Credit

Leasing allows a business entity to keep its credit line available to fund their operating cycle and pay other operating expenses.

 Off Balance Sheet Financing

Most leases are not reflected on the balance sheet. This can improve the leverage ratios for the business entity which is often important to their bank and other creditors.

 Tax Benefits

Leasing can provide a better tax deduction than depreciation and interest expense. Lease payments are made with pre-tax dollars. Consult with your accountant for tax advice.

 Simplify Accounting Treatment

No depreciation schedules to maintain. No asset or liability to capitalize and track.