What Are The Advantages And Disadvantages Of Leasing?
Telling the meaning of leasing and siting examples as well as explain the advantages and disadvantages of leasing and the answer should be in the form of answering an examination question.
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Following are the advantages of leasing:
- Provides 100% financing
- Preserves credit lines
- Increases the purchasing power of an individual
- Balances usage and cost
- Fixed rate financing
- Conserves working capital
- Convenient
- Tax advantage
- Hedge against inflation
- Provides option of flexible payments
Following are the disadvantages
- Contract commitment for entire validity period
- Higher fixed cost per month
- More expensive than purchase.
- Provides 100% financing
- Preserves credit lines
- Increases the purchasing power of an individual
- Balances usage and cost
- Fixed rate financing
- Conserves working capital
- Convenient
- Tax advantage
- Hedge against inflation
- Provides option of flexible payments
Following are the disadvantages
- Contract commitment for entire validity period
- Higher fixed cost per month
- More expensive than purchase.
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