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InterviewSolution
| 1. |
Define lease financing its merits and demerits |
| Answer» Lease financing is a significant medium to long-term, finance solution. The owner of the assets- “the Lessor” gives another person – “the Lessee,” the right to use the asset for a regular (usually monthly) payment. Assets such as vehicles, equipment or software are popular items attracting lease finance.* ADVANTAGES• Less initial cash investment required. • Lower monthly payments. • Tax benefits. * DISADVANTAGES• Limited Financial Benefits• Limited Access to Other Loans• Limited Tax Benefit | |