What is "lease financing" primarily used for?

Lease financing is primarily used for conserving capital by allowing businesses to use an asset without the need to purchase it outright. This method provides companies with the flexibility to access the equipment or property they need while preserving cash flow and working capital for other operational expenses or investments.

In contrast to outright purchases, lease financing can free up resources that the business can allocate elsewhere, aligning well with the financial management strategies of many companies. This approach often appeals to businesses seeking to maintain liquidity or those that prefer not to commit to owning an asset, especially if it's not central to their core operations or if they anticipate needing the asset for only a short period.

Although other options might touch on aspects of asset management and costs, they do not accurately capture the fundamental purpose of lease financing, which is primarily about using assets efficiently without the financial burden of owning them.