What is Leasing Method of Corporate Finance? Advantages for Modern Businesses
In today's dynamic business environment, companies are constantly seeking cost-efficient strategies to optimize operations. One such strategy is leasing as a method of corporate finance, especially in sectors reliant on vehicles for daily operations. This article explores what leasing means in the context of corporate finance, its various types, and its growing relevance in modern businesses, particularly in India. What is Leasing in Corporate Finance? Leasing is a financial arrangement where one party (the lessee) pays for the use of an asset owned by another party (the lessor) for a specified period. Instead of purchasing assets outright, companies opt for leasing to conserve capital and enhance cash flow management. In corporate finance, leasing is widely applied across industries, from heavy equipment to commercial vehicles. Vehicle leasing , in particular, has seen a sharp rise in popularity among Indian businesses. Types of Leasing in India Operating Lease Short-term leas...