Balance Sheet – You may wish to use the finance to purchase an asset. Although it will initially show as a liability, once repaid, that asset is now on the balance sheet. The balance sheet is incredibly important when assessing the business for asset finance.
Cash-Flow – When leasing an asset, this can improve daily working capital as you, the business won’t have such a significant upfront cost. This will aid the company in planning cash-flow projections showing monthly outlays. When leasing expensive assets, this can bring high maintenance costs, so having a maintenance package included can eliminate unexpected costs.
New Equipment – Obtaining new equipment can be very costly with high initial outlays so leasing the equipment this may negate this.