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    In a page, discuss leasing v. owning in the capital intensive industry.

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    In a page, discuss leasing vs. owning in the capital intensive industry.

    © BrainMass Inc. brainmass.com March 4, 2021, 7:02 pm ad1c9bdddf
    https://brainmass.com/business/leasing/leasing-owning-capital-intensive-industry-77798

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    While the most cost-effective alternative is preferred, non-financial factors such as obsolescence and risk need to be considered as part of the buy versus lease decision. If the obsolescence risk is high then lease will be preferable. If the use of asset for example land will increase with the time than buying will be preferred. Following factors will also be considered
    For businesses, capital-leasing property may have significant financial benefits:

    Leasing is less capital-intensive than purchasing, so if a business has constraints on its capital, it can grow more rapidly by leasing property than it could by purchasing ...

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