What factors should be considered in deciding whether or not to use a tax-exempt lease?

When acquiring financing for any asset acquisition decision, the principal financial objective is to obtain the use of the asset for the lowest possible cost, while at the same time, staying within budget requirements and availability. Some key points to consider would be:

• Availability of cash at the time of procurement
• Competing demands on capital resources
• Essentiality of the asset to the basic functions of the entity
• Useful life of the asset
• Desirability of matching costs and benefits over time