Development of Lease Finance in Middle Asia

Reasons Why Lease Finance Is Not Well Developed In Middle Asia

1. Lease charges are generally prohibitive that is the cost of finance is excessive.

2. It may not be identical to businessmen.

3. Uncertainty as to returns from those assets that is the returns from that assets leased may not encourage the growth of lease finance.

4. There is a faulty market as a number of companies lease assets on basis of the lessee of credibility.

5. Lack of flexibility that is a number of assets that are ideal for leasing are unavailable.

6. Asia's financial markets are underdeveloped and this has affected the improvement of lease finance.

7. After lease service is reduced and this leads to loss of revenue.