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There are many reasons businesses choose leasing over purchasing an asset as it is a better option and a more preferred solution to resolve the fixed asset requirement compared to purchasing the asset. In my graphics business, we always lease all kinds of printers rather than purchasing them. Some of the various advantages of leasing:

Regarding liquidity, the lessee can use the asset without investing money.

It is an easy and convenient method where there is no requirement of hypothecation and mortgage.

Leasing helps provide a better debt-equity ratio as the lease obligations are not reported as a liability in the company's balance sheet.

Leasing is a much faster process as the asset can be available for immediate use, and there is no loss of time.

With leasing, there is more flexibility to upgrade easily.

There is no risk of obsolescence of the asset.

Leasing is a cost-saving as the lease rentals paid for the leasing of assets are tax-deductible.

Leasing is much more flexible as compared to purchasing the asset.

Leasing offers potential tax benefits depending on how the lease is structured.

Although every company's requirements differ and leasing isn't for everyone, it should be one option that businesses should give some serious consideration (Haywood, 2015).