Thread: Leasing
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Old 30th April 2012, 06:03 AM   #1

Join Date: Mar 2012
Location: Tustin
Posts: 7
Default Leasing

There are two main types of Lease available, for example operating lease, which is used for companies that keep on updating or replacing equipment and want to use equipment without ownership.
A finance lease is a full-payout, agreement, in which the lessee is responsible for maintenance, taxes and insurance.
Leasing will help in the following
1.To gain the use of the equipment, not necessarily the ownership. This will help you save your money for re-investment in business
2.Helps conserving your cash and using someone else's money.
3.When cost of capital is much higher than the cost of the lease, leasing is better
4.You get tax advantage

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