Close this search box.

10 Reasons Why Leasing Can Benefit Your Company in Today’s Economy

 Reduced Risk of Obsolescence

Leasing is an effective hedge against technology obsolescence and decreases both technology and financial risks. Companies need to be intelligent and careful when entering into leases with the intention of refreshing their equipment at the end of the lease. A key step in evaluating how leasing might reduce cost and technology obsolescence risk is to evaluate the all-in cost of existing and past lease programs. Depending on the type of lease structure you enter into, the lessor will assume the risk of obsolescence.

You can regularly trade up your equipment at the end of your lease and structure new financing. Sometimes, it’s even possible to refinance a trade up during your lease, protecting you from your equipment becoming outdated.

Manage Cash Flow

There may be nothing more important to the health and wellbeing of a business than managing cash flow. Being able to lease equipment without making a large down payment allows you to keep more of your cash in the bank. You can use the cash to make additional purchases or use it for operating expenses. Leasing can reduce your upfront costs of expansion and provide you with the cash flow you need. In today’s unstable economic environment, it will also allow you to obtain the equipment you need immediately and be able to conserve a portion of your cash for other needs that may arise.

Potential tax savings

In many instances, leasing provides a business with income tax benefits by allowing you to expense lease payments rather than depreciating the capital cost of equipment. Always consult your tax advisor to find out how leasing can benefit the tax position of your business.

With a capital lease, you’ll assume liabilities of ownership for accounting purposes; however, you can likely deduct the full amount of your lease payments.

Leases offer several tax benefits to businesses. Lease rents are tax deductible and reduce the overall taxable income, The tax savings can be further invested in the company to increase profitability.

Improve competitive advantage with the latest technology, efficiencies or capacity

Become or remain an industry leader by leasing the most up-to-date equipment without crippling your cash flow or working capital.

 Access to Better Equipment

For many businesses, leasing is the more cost-effective option when purchasing. They not only have access to better equipment, but also more value for their money.

 Lower Maintenance Costs

As the item doesn’t belong to you, you won’t have to panic if there is a breakdown. You can financially plan ahead with more confidence.

Lease administration benefits

There are several lease administration benefits that a business can enjoy. This includes:

  • Minimize operational risks and ensure cost saving.
  • Facilitate better lease data management.
  • Timely manage common area maintenance expenses and costs.
  • Better focus on core business strategies.
  • Improve scalability and responsiveness.


 Leasing offers you the productivity of the technology you require while meeting cash flow needs. Additionally, “soft” costs such as installation, freight, or equipment set up and service contracts can be included in the monthly payment.


Lease payments are fixed and allow you to pay for today’s equipment with tomorrow’s dollars as you earn them.


 Leasing is a proven way to conserve capital while acquiring needed equipment. Leasing does not tie up existing credit lines. It allows you to keep capital available for critical areas such as personnel, inventory, or advertising.

At RentCo Africa Limited We can customize a lease plan that will fit your budget needs. Payments can be lower than conventional financing.

It is therefore evident that leasing is an effective cost saving practice that enables you to reduce cost and improve performance without having to make a large upfront investment by transferring portions of work to a solution provider.

RentCo Africa Limited is your go-to leasing solution provider.


Leave a Reply

Geographical Presence

We have grown our network of offices globally to maintain close relationships with our clients while continuously strengthening our understanding of local and regional markets, regulations and business practices.







Our Sectors

RentCo’s ability to offer customized asset finance, logistics and insurance solutions, combined with strategic partnerships with both global and local partners, enables us to support our multi-sectoral clients in powering their business success.


Industrial & Manufacturing




Energy & Utilities


Transport & Logistics



Our Solutions

Rentco is a solutions-oriented asset-finance, logistics and insurance solutions partner for businesses of any sector, government, and other organizations. 

Our combination of various multi-sector competencies and the specialist knowledge of our partners – enables us to offer you integrated asset finance and auxiliary solutions.

Strategic Services

Advisory & Consulting

Contract Management

Cost Consultancy

PPP / 3P Advice

Energy & Utilities

Auxiliary Services