Unlike term loans, lease financing can provide financing for 100% of the value of a purchase. Most term loans will cap the loan to value ratio at 75%, forcing companies to use short term cash or operating capital to finance productive assets.
With lease financing companies can better align the cost of acquiring the asset to the ability to generate revenue. This can make forecasting and cost analysis easier and more accurate over the life of the assets being acquired.
Pay a portion of the sales tax with each lease payment, spreading the tax liability across the life of the asset. With large scale purchases this can save a significant amount of up-front expense and further align the cost with the assets ability to generate revenue.