Leasing

• Overall


  Leasing involves the payment of money for the use of equipment that is owned by another party

  Contract between the lessor and the lessee that lets the lessee rent an asset for a period of time in exchange for periodic payments
• Advantages


  Cash outflows (payments) are spread over several years, opposed to an immediate cash injection

  Lease payments are operating costs, therefore tax deductible

  Gives the business flexibility to upgrade assets without having to use large cash outlay to purchase new equipment

  Reduced the risk of teAmazonchnology obsolescence