-The company can use the asset to earn without investing money in the asset. They can employ their fund for working capital needs.
-The risk of the asset becoming obsolete according to technological advancement is borne by the company
-Lease rental are deductible from taxable income. The company has lower obligation in bankruptcy than under debt financing.
-The company will own the equipment, so they can make any alterations necessary.
-The company will have options to sell the equipment when they finish using it.
-Buying is very easy because the company does not have to deal with any agreements and contracts. They can simply pick what they need and pay for it.