In today’s marketplace, more companies acquire capital equipment with lease financing rather than term loans. In fact, according to the Equipment Lease and Finance Association, eight out of ten US companies finance some or all of their equipment. No matter what your business size, industry or objectives, financing is a strategic decision and is one that provides ample financial and technological advantages for all acquisitions.

Top 6 Reasons to Lease Equipment:

The Equipment Leasing Association surveyed small and medium sized businesses, and asked them to list reasons of why they decided to use equipment leasing rather then buying equipment.

35% Stated Cash Flow as the Primary Factor
This may be especially important in the capital intensive industries.

17% Sited Dollar Value
Equipment leasing companies offer fixed rate financing for payments that remain the same throughout the term of the lease regardless of interest rate fluctuations.

13% Said They Preferred the Convenience and Flexibility with Equipment Leasing Companies
There are endless ways to configure a lease. For example, it may take months for your new furnace to operate at peak efficiency, so an equipment lease may be set so there are no payments or smaller payments for the first several months. If your business is seasonal, equipment leasing companies can structure your lease with variable payments.

13% Claimed Taxes were the Main Attraction
A lease can be structured as an operating lease so payments are tax deductible and the equipment lease obligation remains off the balance sheet.

13% of the Companies Preferred Maintenance Options
Equipment leasing companies can include maintenance costs in the lease, therefore reducing maintenance cost variations.