Leasing avoids the negative consequences that a loan or purchase may have on the company's liquidity and financing capability. Leasing does not need to affect a business's other loan potential.
A lessor may use the object that is leased as security, while the lessee benefits from transparent and predictable costs for the leased item(s). Depending on the type of equipment, factors such as maintenance, implementation and others may be included.
For businesses with high marketing or other operational costs, leasing is in many cases necessary in order to free capital to maintain activity levels. Outside capital is used to procure the equipment needed to produce goods or services and the equity is used to procure customers.