Equipment leasing is a contractual agreement that enables a business to obtain specific equipment for a set period in exchange for periodic payments. Businesses may opt for leasing due to various reasons. Some of the reasons include: Cash flow considerations: The high initial cost of asset investment can tie up working capital. Additional tangible security: Financial institutions may require collateral that is not linked to the business. Working capital considerations: There may be a need to liberate working capital for operational purposes, such as the purchase of production materials. Tax benefits: Lease rentals are expenses allowed for deductions against the business income tax thus they reduce the business tax obligation. Administrative Convenience: Various assets can be leased under one Master Lease Agreement. Disposable in case of a true lease is handled by the leasing company. Today, we aim to highlight how Midland Furniture, a division of Midland Engineering, capitalized on equipment leasing for their investment needs and established themselves as a sustainable enterprise. Midland Furniture was established by a female founder, who has over a decade of experience in the furniture-making industry. Carol identified that she incurred costs for each board cut by a CNC router, coupled with delays due to her supplier's backlog. Her research into alternative suppliers revealed that these costs and wait times were standard. She investigated the acquisition and import costs of a CNC router for her business. However, the investment would have significantly tied up her capital. Upon proposing a lease-to-own agreement to her for the equipment, we agreed and oversaw its importation and installation. Now, the CNC router operates in her workshop, serving both individual and corporate customers. By opting for a leasing solution, Midland Furniture now enjoys additional benefits, which include: Cost saving: The funds that would have been used to outsource the service are now retained within the business affording her more working capital to purchase boards and other production material required in her furniture making business. Working capital utilization: Working capital is not tied to capital investments but on purchase of production materials that are replenished regularly thereby boosting her production. Diversification to Business to Business (B2B): The investment has opened up a new market of business customers who may comprise contractors, furniture manufacturers, interior designers as she can now undertake large scale projects. She previously focused on Business to Consumers (B2C). Consistency in her workmanship: The CNC machine is a game changer in her business as the cut pieces come in bespoke designs and are cut consistently due to newer technology that allows any design to be created first and then the cut. Sustainability: CNC machines allow precise cutting, minimizing material waste. Off-cuts and errors are significantly reduced, leading to eco-friendlier practices. Energy Efficiency: New CNC machines come with energy-efficient modes, further reducing the carbon footprint and operating costs which the business can attest to as their energy costs have not gone up with the equipment investment. Employment Creation: The equipment investment immediately contributed to the hiring of a female technician to undertake the routing. As the business and orders grow the numbers are only expected to rise. Though automation may be considered to impact jobs, the equipment investment actually necessitated a new skill set within the business thereby creating employment. This example illustrates how leasing has created a new avenue for businesses to access capital resources. The benefits extend beyond mere financial access, showing that leasing can be a transformative solution for SMEs. At Lemik Leasing Limited, our goal is to show that investing in equipment can significantly contribute to the sustainability and growth of a business, particularly when capital is needed for equipment acquisition. Through this single narrative, we seek to influence sectors such as manufacturing, agriculture, education, renewable energy, and ICT. These industries necessitate substantial investments in equipment and infrastructure to grow and scale.