What are the advantages of leasing for the lessee?

What are the advantages of leasing for the lessee?


Following are the advantages of leasing for the lessee:

1)Risks of ownership

2)Saving of capital outlay

3)Structuring of lease rents

4)Tax advantages

5)Convenience

6)No effect on borrowing power
Does leasing increase borrowing capacity of a firm? How?
Yes, leasing increases borrowing capacity of a firm. For example, if a company at present has a 1:1 debt equity ratio…
What is capital structure? What are the principles of capital structure management?
Capital structure is a term which is referred to be the mix of sources from which the long term funds are required …
Principles of cost structure management - Cost Principle ,Risk Principle,Control Principle
Cost Principle: this principle deals with the ideal capital structure which should minimize cost of financing and maximize the earnings per share…
Post your comment

Related Content

Follow us

▲