Why lease equipment?
The simple fact is that leasing is more affordable than a cash purchase because no deposit or up-front payment is required. Also, if you lease your equipment, existing credit lines such as arrangements with the bank remain intact. This gives you the flexibility to use these facilities at a later date to invest capital in other areas of your business, whilst continuing to have the equipment you require.
Leasing also removes the risks of ownership associated with owning depreciating assets and facilitates positive cashflow – vital to any business. Leasing an asset, for example a laptop, means you can fix the cost and make regular payments over a defined period of time. You do not have to account for depreciation of that asset on your balance sheet, and not concern yourself with its disposal at the end of the rental period. And in linking cost to potential benefit you do not have to find a large up front lump sum which then needs to be recouped over a number of years.