Significance and Limitations

The advantages and limitations of leasing are summarised below.

Advantage of Leasing: To the lessee

Lease financing has the following advantages to the lessee.

Financing of Capital Goods

Lease financing enables the lessee to avail of finance for huge investments in land, building, plant, machinery, heavy equipment and so on. upto 100 per cent, without requiring any incendiare down payment. Thus the lessee is able to commence his business virtually without making any initial investment (of course, he may have to invest a minimal sum for working capital needs).

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