Outlay/Preservation of Capital
Instead of tying up cash in equipment, the Lessee can use their cash
for other short term needs.
of Credit Lines
The customer does not have to use their credit lines from their bank,
thus keeping those lines available for other projects.
With a Fair Market Value Purchase Option at the end of the lease term
the customer should be able to expense monthly lease payments, thereby
lowering their tax liability.
Because all costs associated with the new equipment can be included
in the lease (installation, service contracts, etc.) the Lessee can
accurately forecast its cost on a monthly basis and tie the equipment's
period of benefit to the period of payment. Also, since the lease represents
fixed-rate financing, the Lessee can lock in payments now.
At the end of the lease term, the Lessee can opt to purchase the equipment
or lease new equipment that may better suit their needs. With this flexibility,
the Lessee can always access the latest technology. This can also reduce
the risk of obsolescence.