Leasing has become a major source of financing in today’s competitive market. Approximately 80% of all U.S. firms currently lease equipment, and leasing now accounts for one-third of externally-financed equipment.
 

Leasing does not tie up cash in equity, so working capital and bank lines will remain available for future expenditures and investments.
 

True lease payments are generally 100% tax deductible as an operational expense. This means that leasing can save on taxes because the cost may come out of pre-tax dollars instead of after-tax profits.