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Buzz Archive:
Sources of Capital - Leasing Companies

by Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser and D. L. Sonny Williams, 5/12/2010

LEASING COMPANIES

When a company leases equipment, it benefits from the asset's use, not its ownership. As a result, the company does not consume capital that can be used for expansion, growth, or other resource acquisition. Leases are made based on the value of the asset and the credit quality of the borrower.

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