Specialized payments schedules, customized ownership options, and master lease agreements can be included in a lease program. Lease payments are fixed during the term of the lease. Bank Credit Lines Leasing leaves credit bank lines open and available for other business needs. Leasing costs, when adjusted for inflation, decrease in the latter months of the lease term. Avoids Obsolescence Leasing avoids equipment depreciation risks.
Shorter leases transfer a portion of the technology risk to the lessor.
The equipment budget is managed more effectively while allowing use of the latest equipment. Operating leases and rental contracts can be structured so that payments are made with operating rather than capital funds. Leased equipment's can be purchased should capital become available. A percentage of the lease payments can be credited toward the purchase price. Allows Off-Balance Sheet Equipment Funding Operating leases structured in accordance with generally accepted accounting principles do not affect the balance sheet of the lessee.