The biggest benefit of leasing is that payments or cash outflow are spread out over a number of years, relieving you of the burden of large, one-time cash payments.
When someone decides to lease rather than buy an asset, it frees up capital to pay for other capital needs or to save money for a wiser capital investment decision.
Leasing is an ideal option for a newly set-up business, given that it involves lower initial costs, reduced CapEx requirements, and better financial flexibility for growth.
At the end of the leasing period, the lessee has the option to purchase the product and has the option to terminate the leasing contract, giving the business flexibility.
