lease vs cash

lease vs cash  
Capital Resources, LLC  Equipment Leasing | Equipment Finance

The Advantages of Leasing vs. Purchase

Lease J: Leasing has only a slight impact on cash flow because small monthly payments are made over time. Cash L: Buying equipment has an immediate negative impact on cash flow because of the need to make one large payment up front.
Lease J: Leasing equipment requires the user to be responsible for the equipment for just as long as he or she is using it and in possession of the asset. Cash L: Owning equipment requires the buyer to be responsible for the entire life of the equipment.
Lease J: Lessors frequently offer asset management services as part of the lease, transferring the responsibility for tracking the equipment to the leasing company. Cash L: Equipment owners are responsible for tracking the asset through its entire life cycle.
Lease J: In many leases, the burden of maintenance, interest, taxes and insurance is managed by the lessor. Cash L: The owner of equipment must manage all maintenance costs, interest, taxes, and insurance 
Lease J: The end user transfers all risk of obsolescence to the lessor since there is no obligation to own equipment at the end of the lease. Cash L: The owner bears all the risk of equipment devaluation. Obsolescence must be tracked by the owner.
Lease J: Leasing allows for easier upgrades, including master leases that allow for additional equipment to be acquired under original terms and automatic upgrades to new equipment and technology. Cash L: Owners must manage the disposal or selling of outdated equipment. This can slow down the upgrade process.
Lease J: Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios. Cash L: Owners must manage asset liability on their books. Financial accounting standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.

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lease vs cash lease vs cash