Advantage of leasing an asset, Finance Basics

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Advantage of Leasing an Asset

1. The company has the choice to purchase assets on the expiry of the lease period at that time it will identify the viability of the asset.

2. The arrangement may sure lessor bears the maintenance costs reducing the companies operating costs.

3. It does not bind the company's funds in an asset.

4. The company as lessee will enjoy the lease charges as permit able expenses hence reducing taxable liability and tax income.

5. Lease finance enables the lessee to employ the asset to make financial surpluses that may then be required to buy assets.

6. It is generally a long-term arrangement that enables the company to plan returns expected and operations that may be carried out.


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