Leasing overcomes budget limitations and allows a company to acquire new business equipment with easily affordable rental payments. Leasing provides security against equipment obsolescence. Leasing can offer tax advantages. When properly structured, monthly lease payments are fully tax deductible as an operating expense. Monthly payments stay the same for the life of the lease, even if interest rates do not.
Interest rates continue to be low and tax benefits attractive.
Leased desktop and high-speed production copiers include service, parts and supplies for one year. When a small advertising company faced the prospect of acquiring new computer workstations for their agency, the costs looked daunting. We would not have had any cash left for other profit generating aspects of the business. The decision to lease rather than buy was easy. Currently many companies are easing office equipment such as telephone systems, copiers, fax machines, printers, computers and servers and even software because it allows them to conserve capital and spread their costs over time.