Benefits of Leasing

Asset finance (leasing and hire purchase) is a very flexible way of raising funds. The advantages include:

• To buy a new piece of machinery or equipment can be costly and requires substantial capital. Leasing enables businesses to preserve precious cash reserves.
• The smaller, regular payments required by a lease agreement enable businesses with limited capital to manage their cash flow more effectively and adapt quickly to changing economic conditions.
• Leasing also allows businesses to upgrade assets more frequently ensuring they have the latest equipment without having to make further capital outlays.
• It offers the flexibility of the repayment period being matched to the useful life of the equipment.
• It gives businesses certainty because asset finance agreements cannot be cancelled by the lenders and repayments are generally fixed.
• However, they can also be structured to include additional benefits such as servicing of equipment or variable monthly payments depending on a business’s needs.
• It is easy to access because it is secured – largely or entirely – on the asset being financed, rather than on other personal or business assets.