Capital Benefits
While typical bank financing for equipment requires a 10 percent down payment, a lease is always a 100 percent advance. The capital that would have been tied up in the initial equipment purchase can be put to use for other growth purposes. Leasing is also extremely flexible.
Flexible Structure
Consider a manufacturing company that needs special equipment to manufacture a new product.
There could be a nine-month gap or more between the time the equipment is purchased and the time the new product begins to generate receivables. A lease can be structured requiring only partial payments during that downtime, so leftover funds can be used to build infrastructure to launch the new product. Similar accommodations can be made for seasonal businesses or for a wide range of scenarios.