Advantages of Leasing

One of the greatest advantages of leasing is that it offers fairly minimal upfront costs. Unlike bank loans that may require a substantial down payment, two advanced payments are generally all that are required at the beginning of a lease.

In addition, leasing protects against equipment obsolescence by forcing you to evaluate the useful life of the equipment that you intend to lease and to set lease terms accordingly.

Finally, leasing can lessen the burden that taxes have on your company's wallet. Depending on how your lease is structured, you may be able to fully deduct lease payments as a business expense as opposed to depreciating the value of the equipment as if it were a capital expenditure.