Quick Finance Tip - Leases

​Lessor is the owner of the asset and lessee is the party obtaining the use of an asset. Advantages for leasing (for a lessee) is less costly financing with little down payments and a lower fixed rate. Therefore, the advantage stems from the mutual gain of the lessor having the (1) Tax advantage benefits of ownership (i.e. depreciation), (2) Better risk management scalability associated with ownership, and/or (iii) Leverage economies of scale.