Commentary

140 Leasing and hire purchase of plant, machinery and other assets

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

140 Leasing and hire purchase of plant, machinery and other assets

| Commentary

140 Leasing and hire purchase of plant, machinery and other assets

Leasing1 and hire-purchase agreements provide finance for the acquisition of specific assets, for example, plant and machinery, cars and other equipment. In either case, the business will usually be required to pay a deposit and then pay rental or hire payments over the rest of the period of the agreement2.

In the case of a lease, no ownership will ever pass to the business. At the end of the leasing period, the parties will either enter into a new leasing agreement for new assets or the business may continue to

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