• It offers fixed rate financing; you pay at the same rate monthly.
• Leasing is inflation friendly. As the costs go up over five years, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther. (In addition, the lease is not connected to the success of the business. Therefore, no matter how well the business does, the lease rate never changes.)
• There is less upfront cash outlay; you do not need to make large cash payments for the purchase of needed equipment.
• Leasing better utilizes equipment; you lease and pay for equipment only for the time you need it.
• There is typically an option to buy equipment at end of lease term.
• You can keep upgrading; as new equipment becomes available you can upgrade to the latest models each time your lease ends.
• Typically, it is easier to obtain lease financing than loans from commercial lenders.
• It offers potential tax benefits depending on how the lease is structured.

Lease financing is emerged as one of the most important form of long term finance. If a company acquire right to use an asset without purchasing it from the owner of the asset is termed as lease financing. Lease financing is the written agreement or deed between the owner of asset and the company witch wants to use it without buying.There are two types of lease financing viz. Operating lease contract and Financial lease contract. Under Operating lease contract Lessor selects and buys the equipments or automobiles and leases it to the lessee, Lessor bears the insurance, maintenance and repair cost of the equipments or automobiles. Where as in case of Financial lease contract Lessor just acts as financier, lessee can select and buy the equipments or automobiles based his requirements with the financial help from Lessor, Lessee bears the cost of insurance, repair and maintenance cost of the equipments or automobiles under contract period.

Huge capital investment on asset can be eliminated buy lease purchasing of assets.
Risk of depreciation and obsolescence doesn’t affect to the lessee.
Leasing is quickest and easiest method of financing of capital
The periodic lease rents paid by the lessee are tax deductible expenditure.
Leasing increase the borrowing power of the company as its debt equity ratio will be unaffected by lease purchase.
Bad investments can be avoided by lease purchasing.
Lessee can lease purchase and pay for asset only for the time he needs it.
Lease financing is not affected by inflation. Even if the costs go up over some years, you still pay the same lease rent as agreement.
In case of car lease finance or auto lease finance, one can enjoy using latest or high cost cars without buying it for a desired period of time.