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Economic aspects of financial leasing in business investments

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Author(s): Adrian SIMON

Journal: Scientific Bulletin : Economic Sciences
ISSN 1583-1809

Volume: 9;
Issue: 1;
Start page: 65;
Date: 2010;
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Keywords: leasing | financial investments | risk management

ABSTRACT
Leasing, as a financial instrument, was able to affirm itself in manydeveloped countries as one of the most effective and accessible mechanisms forfinancing the expansion and development of the means of production, asset financenecessary for the development and for the application of new technologies inbusiness. Leasing is a modern way of financing through which the customer enjoys agood, the payment being spread over the period of the lease, and the installmentspaid being deductible according to the type of leasing contract. Compared withother forms of financing, leasing has the advantage of eliminating red tape requiredfor the granting of credits and the financial guarantees only with the asset that is thesubject of the lease.
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