Commentary

141.2 Advantages and disadvantages of leasing premises

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

141.2 Advantages and disadvantages of leasing premises

| Commentary

141.2 Advantages and disadvantages of leasing premises

Apart from the fact that leasing premises rather than buying them releases capital which may be better invested elsewhere in the business1, there are other advantages. One major factor is flexibility. If the premises become unsuitable to the needs of the business, for example, if the business needs to expand, or to relocate to tap into a bigger market, or even if the area in which the business is sited changes, the proprietors can decide to abandon the premises when the lease expires with no further commitment. If, on the other hand, the

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