What is a lease financing? What are its advantages?
Answers
Answer:
A finance lease is a way of providing finance – effectively a leasing company (the lessor or owner) buys the asset for the user (usually called the hirer or lessee) and rents it to them for an agreed period. A finance lease is defined in Statement of Standard Accounting Practice 21 as a lease that transfers.
Explanation:
Advantages of Lease Financing
Less initial cash investment required. ...
Lower monthly payments. ...
Tax benefits. ...
Fast turnaround time. ...
Conserve your capital. ...
Avoid technological obsolescence. ...
Assist corporate growth. ...
Let the equipment pay for itself.
Answer:
A finance lease is a way of providing finance – effectively a leasing company (the lessor or owner) buys the asset for the user (usually called the hirer or lessee) and rents it to them for an agreed period. A finance lease is defined in Statement of Standard Accounting Practice 21 as a lease that transfers.
Advantages of lease financing
To the lessee: Tax benefits: a company is able to enjoy the tax advantage on lease payments as payments can be deducted as a business expense. Cheaper: leasing is a source of financing which is cheaper than almost all sources of all the source of financing