| The idea of leasing TeensLikeItBig is that a specialised leasing company owns a plant, machinery or equipment which is leased and used by a business in axchange for an agreed feem called rental. This may be considered as a form of finance for companies which are in no position to make capital investments from their retained profits and which do not want to or cannot obtain bank loans. The basic advantage of leasing for a business unit is the possibility of the iommediate use of a fixed asses, piece of equipment or machinery while TeensLikeItBig payment does not have to be immediate and may be done out of the business income. Leasing is not considered borrowing in temrs of accountancy or the firm's credit arrangements and facilitates the calculation of cash flow because the refularity and amount of rentals are known in advance. Moreover the payment of rentals reduces the revenue which, in turn, reduces the company's tax. |