It’s in the Fine Print

Many companies decide to lease because of concerns about rapidly changing equipment technology life cycles. They lease with the goal of returning the equipment to the leasing company after it finishes its useful life cycle.

Leasing companies love solid collateral like web and sheetfed presses, cutters and bindery equipment. The equipment holds its value for years, and most customers end up buying the equipment at lease termination. Equipment that holds its value provides lenders added comfort if their customers run into financial troubles. In-plants intend to use the equipment for many years and want to own it even if the end-of lease purchase option seems excessive.