Leasing or capitalizing? | Office ToDo

There are some people and companies that prefer leasing over owning assets. For the purpose of the argument, we do mean operational lease and not finance lease in here. It?s ownership versus renting.
I guess it comes down to priorities. Whether it?s important for you to own the asset and not worry about cash or simply rent it and pay for it as a regular service you?d buy. One option gives you the ownership but also all the accompanying risks, but doesn?t result in a regular cash outflows. The other option means you?ve got minimal risks and none relating to ownership, but you do have to pay a sum of money each period.

Pro capitalizing people would say that owning an asset gives you the freedom to use it whenever however and modify it as you see fit. They?d also say that not having to worry about regular cash outflows is a huge bonus.

Pro renting people would say that they do not want the risks and they outweigh the benefits received from owning the asset. They do see the monthly charge as compensation that someone else owns the risks.
There are pros and cons to both, but in my opinion it really comes down to the question whether you are able to accept the risks that come with ownership or you?re willing to give away bits of your freedom in business making. It?s up to you entirely. Something that?s also a possible incentive is the cash outflow of course. How important is it for you to have free cash?

Source: http://www.officetodo.com/public/leasing-or-capitalizing/

geithner gabrielle giffords juliette lewis chelsea handler mitch daniels shirataki noodles john kerry