Reasons to Lease Reasons to Lease vs. Cash

•Only pay cash for items that appreciate in value - use somebody else's money for items that depreciate
•Cash kept in the business improves the balance sheet and the key financial ratios lenders evaluate
•Cash is derived from after-tax profits - the lease payment is a pre-tax expense

Reasons to Lease vs. Bank Financing

•Generally leasing requires much less out of pocket money
•Leasing keeps bank lines of credit available for business opportunities and other short term cash requirements
•Leasing may offer off-balance sheet financing which can enhance a company's financial ratios and ability to get a loan
•Leasing provides an additional line of credit for the company as well as an additional credit reference