1. Improve your cash flow.
Leasing gives you access to the asset with minimal up-front payment and spreads the cost over time. It allows you to pay for the asset with the income it generates, while reducing the drain on your working capital.
2. Off Balance Sheet.
An operating lease preserves your credit options and does not affect your credit limit, as it is generally not classified as debt but as a running cost or expense. It is also treated as ‘Off Balance Sheet Finance’.
3. Maximise Financial Leverages.
Your lease will finance everything related to the purchase and installation of the asset and will free up cash flow to pay for items such as working capital, training and stock.
4. Simplified Cash Flow Management.
Lease payments are fixed, making budgeting and forecasts more accurate than with variable rate bank facilities. Fixed rates will also provide a cost saving when interest rates rise.
5. Tax Advantage.
Leasing payments are 100% deductible against taxable profits.
6. Flexible Time Frames.
Leasing contracts can be structured to fit your requirements and the life span of the asset.
7. Maintenance and Service.
Some leases offer additional advantages such as cancellation options or asset maintenance and service.