In your firm, what benefits does leasing offer, compared to the purchase of an asset? Provideexamples

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In your firm, what benefits does leasing offer, compared to the purchase of an asset? Provideexamples

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Answer:

lease is the long term agreement made for  equipment, buildings , land or any other big asset. In  lease agreement  the lessee ( user) makes its periodic payments to (lessor) owner of asset. This lease payment covers  original cost of the equipment

The main benefit  of leasing that business can attain assets without its outlaying essential cash..

Lease do not requires down payment, on the other hand in purchase through loan requires 25 % down

Capital assets can fluctuate in its value. In leasing of property it, shifts risks to lessor , but if property market which has  steady growth over the time, the business that is depends on to leased property is in sacrificing capital gains.

Lease do not requires restriction on the  financial operations of the company ,on the other hand loans often put restriction on the  financial operations of the company

It Spreads the  payments over longer period

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