Golden Eagle Leasing, Inc.-Benefits of Leasing Of all the ways to acquire equipment, leasing is the method most frequently used. Today, eight out of ten American companies lease some or all of their needed equipment. Leasing provides a flexible approach to equipment acquisition.
Companies have different needs based on their life cycles and financial circumstances.
Start-up companies typically have little cash and limited debt lines. Mature companies might have other needs such as to keep debt lines free, to comply with debt covenants and to cope with the technological obsolescence of certain types of equipment. Thus, leasing allows companies to be more flexible in the management and use of their equipment. With leasing, the uncertainties and risk of ownership are assumed by the lessor, which allows the lessee to focus on the use of the equipment as part of managing the overall enterprise. Equipment is costly and the risk of technological obsolescence can be minimized with leasing, since upgrades and adding equipment is facilitated with leasing.