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