This paper studies the role of leasing of productive assets. When capital is leased (or rented), it is more easily … repossessed and hence leasing has higher debt capacity and relaxes financing constraints. However, leasing gives rise to an agency … leasing provided by leasing firms, namely that leasing “preserves capital,†which is generally considered a fallacy in the …

main modern forms of leasing which are more common in business finance. …One of the main reasons that leasing is a financial alternative so popular in the world is the one that synthesize its … them by purchasing fixed assets. This article aims to approach the leasing as a source or as a financing alternative …