Advantages of Leasing
Financial Benefits: The lessee need not pay the whole cost of Asset out rightly. The company may prefer low cash outflow at present if there is a positive difference between lease & buying.
Flexibility of Lease: Leasing is more convenient (Operating Lease) for the assets to be used for a short period.
Risk of Obsolescence: The lessee can pass the risk of obsolescence to the lessor which is more useful in case of leasing the computer and other electronic equipment.
Need for maintenance and specialised services: In case of leasing of some equipment like aircraft, ship leasing machines etc., for the maintenance & specialised services.
Tags: Advantages, Advantages of Leasing, finance, financial, Flexibility, Hire, Hire Purchase, Leasing, Management, of, Risk, services
By: Management Duniya
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