Advantages of Equipment Leasing & Finance Industry
For the past 40 years, American business has been recognizing the advantages of leasing equipment, and thus, increasing its use. Business owners realize that the value of equipment comes from using it, not owning it. The advantage of equipment leasing allows making investments that open the door for economic growth and productivity, and the high quality jobs that can only be accomplished with technological and productive equipment.
According to a survey by Equipment Leasing Association (ELA), around 73% of all U.S. companies lease all or some of their equipment. Companies that lease tend to be small, growth-oriented companies that put emphasis on technology and productivity.
Of the many advantages of equipment leasing the Equipment Leasing Association’s research also showed that 31 percent of all productive assets acquired by American businesses in 2001 was leased. More companies, especially small companies, opt for acquiring new equipment through leases rather than through loans. This is not surprising given that the loans require a substantial down payment, carry a risk of equipment devaluation because of new technology, require pledging other assets for collateral, etc., whereas a lease does not require all this.