There is no single answer to the dilemma of Capital Expenditure versus Leasing. In order to outright purchase copiers, telephone systems, It equipment, and organization will need the whole sum to invest immediately. This will obviously impact cash flow. Many organisations also have complex approval processes with a requirement for specific returns on investments. Leasing removes the requirement for capital investment with positive impact on the balance sheet and cash flow.
Another significant benefit relates to responding to the fast moving business environment of today. Once a Capex is committed it is extremely difficult for an organization to respond quickly to changes in the market, technology or competitive activity.
On the other hand when equipment is leased, there is much greater flexibility given to the organisation, to respond quickly to changed circumstances.