If you pay by cash then the entire
amount of the purchase must be
drawn from exisiting capital funds
which could be better invested.
With leasing, profits can pay for
Borrowing power remains intact. If you
have existing facilities with banks these
are unaffected if you use a further
source of finance.
Lease Rental payments are classified
as an expense so they are 100% tax
With Lease Purchase, the interest
content of the repayment can be offset
against taxable profits.
Leases can be upgraded before the
end of the period so you can keep
up to date with the latest equipment.
Lease Rentals are fixed for the duration of
the agreement so you can plan ahead
knowing what the annual lease outlay will be.