Benefits of Leasing

A.T. LEASE provides a wide range of asset financing approaches, including tax driven and non-tax solutions. If a lease is properly structured, it will significantly reduce your after-tax cost of capital and help address your specific cash flow and balance sheet needs as well as your funding and asset management concerns.

Advantages to the Lessee

Efficiency and Adequate Cash Cycle

Leasing allows you to meet your goal of growing with overstretching your cash position.

Flexible, Fast and negotiable

Flexibility and scalability: Leasing provides flexibility in terms of equipment upgrades or expansions. At the end of the lease term, businesses can choose to upgrade to newer equipment or adjust the lease agreement to accommodate changing needs.

Balanced cash Flows

Payments related to leasing are spread out over several years, hence saving the burden of one time significant payment.

Tax benefits 

Lease payments are often tax-deductible as an operational expense for businesses, potentially reducing the overall tax liability. Furthermore, the tax deductibility of lease payments provides a larger and immediate cash flow than that provided by depreciation and interest deductions.

Quality Asset

While leasing an asset , the ownership of the asset still lies with lessor, where as the lessee just pays the natural expense given this agreement.

Provide working capital for more productive use (conserved cash flow)

It's important to note that the benefits of leasing can vary depending on the specific situation, industry, and the terms of the lease agreement. It's advisable to carefully evaluate the terms, costs, and long-term implications of leasing versus purchasing to determine the best approach for individual needs or business objectives.

Financial Impact

Over the life of the lease, the lessee will incur only the annual lease expense (lease rent), which will be reported on his profit and loss statement as operating expenses as prepaid lease rent expense. Such accounting treatment will have positive impacts on your financial ratios as it will

Overall, leasing is the cheapest source of financing for tax-paying companies

● Lower the lessee’s leverage
● Enhance the asset efficiency ratios by increasing the return on assets (ROA).
● Reduce the impact on book earnings, since lease payments are made from pre-tax rather than after-tax earnings and, unlike capital purchases.
● Rental payments reduce the lessee’s taxable income due to possible use of the accelerated depreciation, which results from having the term of the lease contract less than actual depreciation rate of the asset.

Benefits of Leasing


Egyptian Laws

Lease Types

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