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Merits of lease financing

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Merits of lease financing

Posted by Gungun Keshri 5 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Yogita Ingle 5 years, 10 months ago

1. It enables the lessee to acquire the asset with lower investment.
2. Simple documentation makes it easier to finance assets.

3. Lease rentals paid by the lesseee are deductible for computing taxable profits.
4. It provides finance without diluting the ownership or control of business.
5. The lease agreement does not affect the debt raising capacity of an enterprise.

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