Capital and liquidity are in short supply for implementing necessary projects and investments. By leasing technology, equity is freed up, since equity is primarily utilised for core activities. The lease is recorded as a direct operating cost to the companies and departments which use the solutions.
The effect of leasing is to free up equity through buy-backs, and to provide financial scope for ongoing investments.
The object is to have available the necessary funds to implement important efficiency improvement projects at a predictable cost over time.
The use of external capital is a strategic decision that requires a clear-cut position on the use of equity.