Availability of Cash:  Most lease arrangements have fewer restrictions than loan agreements do, providing flexible financing.  In addition, leasing is well-suited to piecemeal financing.  A company that is acquiring assets over time may find it more convenient to lease than to negotiate term loans or sell securities each time the company makes a new capital outlay.
     

*Flexibility: Leasing can provide more flexibility for many companies who may need cash to invest in their main business (inventories, salaries, equipment, etc.)  It may be more profitable to use  their financing capabilities to run the main business than to invest in real estate to house the business.  Opportunity cost will be an important consideration for the decision maker.
    

Tax Relief: Leasing can provide tax relief because the lessee can deduct the full amount of the lease payment for tax purposes, thus participating in the tax advantages of ownership in a limited way.  If a lease is triple-net, the lessee will pay its portion of the property taxes and can deduct them as an operating expense on its taxes.
    

Financing: Leasing can provide 100 percent financing, while most borrowing requires a down payment.  Because lease payments are normally made in advance of each period, this 100 percent financing is diminished by the amount of the first required lease payment.
    

Cash Flow: Cash flow undoubtedly is critical in any business.  Most businesses are run by cash flow and are value-based on cash flow. Your cash flow could possibly be more effectively utilized in operations. Earnings could greatly be enhanced.
 

Technology: Leasing can allow a commercial user to respond to technological changes more quickly.  Most businesses need to be on the cutting edge of technology.  
  

Focus: Leasing allows concentration on the primary business without the distraction of managing real estate.
  

Stability of Costs: The ability to accurately anticipate costs is very important to many businesses.  Leasing tends to smooth out the expenses for the lessee.  Because lease payments are a continual annual outlay, earnings tend to appear more stable when assets are leased rather than owned.  This can be very important to businesses that must strictly monitor cash flows or have seasonal cash flows.