Leasing Industry Overview

For over 40 years, American business has increased the use of leasing, recognizing that the value of equipment comes from its use, not its ownership. Equipment leasing continues to mean investment in productive assets, economic growth and productivity, and the high quality jobs associated with technological and productive equipment, which makes up the bulk of leased assets.

Leasing is A Major Source of Investment in New Equipment

More companies, particularly small companies, acquire new productive equipment through leases than through leases than through loans. 80% of all US businesses use equipment leasing for all or some of their equipment.

American Leasing Companies Own More Equipment Than Any Other Industry

Who Leases? Everybody! They lease on an ongoing basis – adding, upgrading, using the flexibility provided leasing to have the most cost effective operation possible. Companies that lease tend to be growth-oriented, focused on productivity, and technology-oriented. These are companies long on ideas, and in need of financial flexibility as they grow and change. Companies that lease tend to create more jobs and be the most entrepreneurial and competitive.

Why America Leases:

	The most frequent reason given is the need for the equipment flexibility related to either changes in the business of protection against technological obsolescence.
	Cash flow and financial reasons. Leasing permits a close matching of rental payments to the revenue produced by using the equipment. Leasing keeps debt lines open for working capital rather that tied up in capital expenditures.
	Efficiency and convenience. Companies make money by using equipment. Leasing provides a wide range of services related to equipment that can allow a company to focus on its core business. Acquisition, disposition, maintenance, and upgrading are just some of the benefits a lease can provide along with the capital itself.
	Stimulating investment and serving growth. Companies are incented to invest in new equipment by the federal and state tax codes. But often the companies cannot use these incentives. Through the use of leasing, however, the benefit of the incentive can be realized as an expense.