Lease Financing Adds Financial Flexibility

Surviving and growing in fast-changing, uncertain markets requires companies to ensure they have a solid strategy as to its optimal capital structure and cash flow strategies to finance operations. Additionally, with the growing demand on technology to improve productivity, there is increased need to upgrade assets subject to rapid obsolescence. Lease financing should be included in a company’s strategies to address these needs. In many cases, financing via leasing gives businesses increased flexibility to negotiate terms to (i) better manage cash outflows with expected inflows, (ii) improve the company’s capital structure, and (iii) increase overall profitability and return on invested capital. Approximately one-third of all equipment acquisitions are now financed by leases. In addition, nearly 80% of all companies lease to some extent.

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