Benefits of Leasing

The evident benefit of leasing is the use of an asset without paying a large sum of initial cash. A lease regularly requires no down payment, while loans frequently do. A lease doesn’t restrict company’s monetary operations, while loans often do. A lease distributes payments over a longer period than loans permit and secures protections against the risk of machinery wear-out, since the lessee can dispose of the machinery at the end of the lease. Lease payments are deducted as operating expenses if the arrangement is a true lease. Leasing has another advantage that the leasing firm can ensure specialist technical advice based on experience with the leased machinery.
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