Guest
asked 3 years ago
1 Answer - Sort by: Date | Rating
The lease system of suing assets has the following advantages to the lessee.
No Down Payment: As against hire purchase or installment sales, the lease does not require making down payment, thus, cash is saved that may be invested elsewhere.
Capital Saving : Capital amount is saved if the firm decides to finance its needs by leasing instead of buying.
No Risk of Obsolescence: The risk of obsolescence of leased assets is averted. When a new invention, model , or an improved product like computers or cars is introduced into the market the lessee may ask the lessor to replace the old asset with the new one without any extra financial burden . Moreover, the old asset so replaced may be released to another lessee. At a time when new inventions and product innovations are coming up at rapid pace the lease method of financing is a blessing for the lessee who becomes enabled to always keep modern equipment . However , if the chance of obsolescence are higher the lessee has to pay larger lease amount . But it depends on the predictability of the obsolescence and the salvage value.
No Conditions & Restrictions: Borrowing involves many restrictions and conditions . Such typical restrictions are not applicable to the lease.
No Down Payment: As against hire purchase or installment sales, the lease does not require making down payment, thus, cash is saved that may be invested elsewhere.
Capital Saving : Capital amount is saved if the firm decides to finance its needs by leasing instead of buying.
No Risk of Obsolescence: The risk of obsolescence of leased assets is averted. When a new invention, model , or an improved product like computers or cars is introduced into the market the lessee may ask the lessor to replace the old asset with the new one without any extra financial burden . Moreover, the old asset so replaced may be released to another lessee. At a time when new inventions and product innovations are coming up at rapid pace the lease method of financing is a blessing for the lessee who becomes enabled to always keep modern equipment . However , if the chance of obsolescence are higher the lessee has to pay larger lease amount . But it depends on the predictability of the obsolescence and the salvage value.
No Conditions & Restrictions: Borrowing involves many restrictions and conditions . Such typical restrictions are not applicable to the lease.
0
0
- What Is The Concept Of Centralized Purchasing?
- Does A Press Release Need To Be Striking Like, Say, An Ad. How Do Press Releases Reach The Media?
- Being A Cost Analyst Of An Automobile Company, You Have Suggested Adopting A Perpetual Inventory System For Inventory Maintenance. On What Factors A Perpetual Inventory System Would Be Suggested?:
- What Are The Advantages Of Colonisalism?
- Explain Tha Various Elements Of Marketing Concept?
- What Economic Factors Affect A Communication Company?
- Identify And Explain Three Reasons Why Customers Would Pay More For Exclusivity?
- How Many Stamps Do I Need To Use To Mail A Letter From Oklahoma To Colorado?
- What Are The Responsibility's Of The State Assembly?
- Your Standard Work Week Is 40 Hours. You Have Worked 46 ½ Hours. Your Regular Hourly Rate Of Pay Is $7.65 And You Get Paid Double Time For Overtime. How Much Regular Pay Would You Receive?
- Best Place For Wholesale For Junior Trendy Clothing?
- What Is Balance Carried Down?
- How The Central Bank Control The State Bank Of Pakistan?
- Us Our Country's Main Resources Dealing In Services? What Kind Of Services Does Our Country Specialize In?
- Explain The Main Element Of Marketing Management?
- What Was Your Nature Of Job?
- How Can Virues Be Helpful?
- Which Book Should Purchase For Fy Ba Psychology?
- How Much Does It Cost To Send A Letter To Australia?
- What Is The Purpose Compiling Ana Presenting Information In A Scientific Paper?
- When Did Advertising Originate?
- What Is The Sort Code For The Abbey National In Suffolk?
- How Do You Value A Company?
- Can Decrease In Unemployment Lead Pakistan's Economy Towards Development?
- How Do I Contact Citizens Information Center?
- What Are The Advantages And Disadvantages Of Leasing?
- What Is Financing By Leasing?
- What Are The Benefits Of Leasing?
- What Are The Difference Kinds Of Leasing?
- What Is The Difference Between Leasing And Lease?
- What Caused The Consumer Leasing Act?
- Can You Give Home Leasing Advice?
- What Questions Should I Ask About Leasing A Building For Business?
- Does My Landlord Have A Right To Have A Key To The Home We Are Leasing?
- What Is The Comparison Between Leasing Company And Bank?
- Can A Landlord Store His Things At The Property We Are Leasing?
- My Dryer Is Broken (& I'm Leasing It) Shouldn't It Be Fixed Asap?!?
- Is The Car Leasing Industry Regulated In The UK?
New Comment - Comments are editable for 5 min.