Leasing is off balance sheet financing and is not reflected on the business sheet. That's why over 80% of all capital equipment purchased in the United States is leased. When companies expand, they turn to the banking institutions for expansion capital. Leasing allows capital improvements without creating debt to worth ratios that cause banks to decline loan applications for expansion.
Leasing provides a new source of funds, often enlarging the pool of capital available to your company, which can be attractive when "tight" money conditions exist. Leasing frees up a company's capital for expansion.
Leasing provides accelerated expenses when compared to depreciation schedules allowed by the federal government. This lowers the taxable income of the business.
