Leasing vs Buying
Leasing is based on the proposition that profits are earned through the use of assets, rather than from their ownership.
It focuses on the lessee’s ability to generate cash flow from business operations to service the lease payment, rather than on the balance sheet or past credit history. This is why leasing is particularly advantageous for new, small and medium-size businesses that do not have a lengthy credit history or a significant asset base for collateral.
The lack of a collateral requirement with leasing offers an important advantage.