What are the key advantages of leasing as compared to borrowing to acquire an asset? What are the key disadvantages of leasing?© BrainMass Inc. brainmass.com March 4, 2021, 11:03 pm ad1c9bdddf
Leasing is generally more expensive than borrowing to buy, and FASB 13 has reduced the availability of off balance sheet financing. Leasing has thus continued to be popular as a result of the following points:
- Down payment normally not required
- Easy credit approval with mfg./lessor
- Little or ...
This solution provides a list of the key advantages of leasing an asset as opposed to borrowing to acquire it. The downsides of leasing are also addressed.