Not only does a lease conserve working capital by covering the purchase cost - it allows the company to pay GST and PST on the rentals rather than up front. Leasing offers diversification of lending sources. Federally chartered banks have, by regulatory law, built in limits on the availability of loan funds to any single customer. Diversification of financing sources makes good business sense whether credit is in short supply or not. At any time when bank financing normally is available, it is possible, that a business may fall out of favour with its primary or only bank, and not be able to access additional funds.
Many lenders expect businesses to reduce their line of credit from time to time, sometimes.
In this case leasing may provide an additional source of financing. In the fast-paced business environment needs are always changing and leasing makes more sense by allowing companies to update equipment in a managed, strategic fashion. Technology is developing quickly, and equipment that was ideal several years ago is now less efficient. Unless you have an inexhaustible budget, purchasing a piece of equipment restricts your ability to update regularly. Leasing allows you that opportunity.