Who Leases and Why

  • Proprietorships
  • Partnerships
  • Corporations
  • Big Companies
  • Small Companies
  • Medical Practices
  • Law and Accounting Practices
  • Non-Profit Associations

Why do companies lease their capital equipment?  These are the reasons cited most often by our customers (percentages are approximate and total to more than 100% due to multiple reasons cited):

  • Tax Benefits – Approximately 80% to 90% of our Lessees – All profitable, tax-paying companies that pay taxes are interested in saving on their tax liability.
  • “No Money” and/or “No Bank Borrowing Ability” – A very small percentage of our Lessees – perhaps 10% at most.
  • Cash available and/or bank credit available but simply have something better to do with their cash and cash equivalents than tie it up in machinery – 75% or more of our Lessee clientele.
  • Avoids budget restraints – Replaces one operating expense with another operating expense – without affecting the Capital budget – 25% of our Lessees.
  • Leasing is a CAPITAL MANAGEMENT TOOL – virtually all of our clients