Lease Financing – is designed for companies that are profitable with
positive cash flows and have the need for tax shelter. Companies can
also raise new funds to augment their cashflows by entering into a Sale
and Lease-Back arrangement, where the lessee sells an asset they already
owned for a specific period.
Leased Assets – A lessee can enter into an arrangement to lease private
motor vehicles, commercial motor vehicles, office equipment, furniture
and fixtures, machinery and production equipment.
Benefits of Lease Financing – Some of the benefits of lease financing
are listed below:
- A company is able to enjoy the tax advantage on lease
payments, as lease payments can be deducted as business
expense. - 100% financing is provided
- The company may reduce their liability by making a balloon
payment at the start of the lease - Augment their cashflows through the sale and lease-back of
assets already owned
