Financing in a Global Economy:
As business decisions go, it’s generally a better idea to lease equipment than purchase it. In fact, over 90% of Fortune 500 companies lease equipment despite their strong cash positions. Why? Because like Dunn and Bradstreet, they know that the average company earns 12% on every dollar of working capital retained in the business — so while cash should be used to increase sales, equipment is best financed through leasing companies.
If you compare lease interest rates with those for conventional financing, there may appear to be no difference. But when you take into account the benefits, you’ll see that in most cases, leasing helps you make or save money.