Disadvantage of leasing an asset, Finance Basics

Disadvantage of Leasing an Asset

A. It is a pre-conditional finance as on the needs of asset

B. In the long term the lease charges might out-weigh the cost of buying own asset.

C. It is available for a chosen asset and this restrictions flexibility.

D. It is utilize for financing fixed assets and not working capital

E. Lease finance might not be renewed leading to loss of business.

F. Lease financing lowers such the company's credit rating that is the asset in the balance sheet is exposed as leased asset.

Posted Date: 1/29/2013 4:56:50 AM | Location : United States







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