Companies choose to lease for many reasons, including:

• Leasing provides capital. At a time when bank facilities are shrinking, leasing is a way to conserve scarce bank credit.
• Leasing matches financing to the corresponding asset. Rather than pay full price for the cost of an asset on the front end, leasing allows a company to pay over the useful life of the asset. Rental expenses can be tailored to match revenue generated by the asset.
• Leasing reduces technology obsolescence risk. Many companies invest significantly in high technology equipment.  By leasing this equipment, a company can use the equipment for a shorter period of time and upgrade to new technology more quickly.
• Leasing controls disposal issues. Many types of equipment face strict disposal guidelines, including EPA rules and data security rules. By leasing these assets, a company can manage the disposal process more effectively.
• Leasing may provide tax benefits. Depending on a company’s tax position, leasing may offer a lower after-tax financing cost than paying cash. 
• Leasing may enable lessees to qualify for off balance sheet accounting treatment. Under current accounting rules, certain leasing can be structured off balance sheet.  Even though proposed guidelines may change this, they have not yet gone into effect.