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State the advantages of using Sale and Lease Back.

State the advantages of using Sale and Lease Back.

Answers

sharon
1.The company gets finance in cash and finance in kind which boost its operations tremendously
2.Since the lessor and the lessee are known to each other, this finance may not entail any conditions or restrictions on the part of the lessee.
3.This arrangement does not involve tedious formalities, thus is flexible to raise for financing reasons.
4.The risks of obsolescence shifts from the lessee to he lessor thus will entail less risk of capital loss the lessee.
5.It is easily available i.e faster because the two parties are known to each other.
sharon kalunda answered the question on April 16, 2019 at 14:22

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