• Lease charges are usually prohibitive i.e. the cost of finance is excessive.
• It may not be known to businessmen.
• Uncertainty as to returns from such assets i.e. the returns from such assets leased may not encourage the growth of lease finance.
• There is an imperfect market as a number of companies lease assets on basis of credibility of the lessee.
• Lack of flexibility i.e. a number of assets which are ideal for leasing are unavailable.
• Kenya’s financial markets are underdeveloped and this has affected the development of lease finance.
• After lease service is poor and this leads to loss of revenue.
Kavungya answered the question on March 11, 2019 at 13:42
- Give the advantages and disadvantages of leasing assets.(Solved)
Give the advantages and disadvantages of leasing assets.
Date posted: March 11, 2019. Answers (1)
- Give the Advantages of Using a Bill as a Source of Finance.(Solved)
Give the Advantages of Using a Bill as a Source of Finance.
Date posted: March 11, 2019. Answers (1)
- Give reasons Why It May Be Difficult For Small Companies To Raise Debt Finance In Kenya.(Solved)
Give reasons Why It May Be Difficult For Small Companies To Raise Debt Finance In Kenya.
Date posted: March 11, 2019. Answers (1)
- Give the Similarities between Debt and Preference Share Capital(Solved)
Give the Similarities between Debt and Preference Share Capital
Date posted: March 11, 2019. Answers (1)
- Give the Similarities between Preference and Equity Finance(Solved)
Give the Similarities between Preference and Equity Finance
Date posted: March 11, 2019. Answers (1)
- Give the Advantages and disadvantages of Using Debt Finance.(Solved)
Give the Advantages and disadvantages of Using Debt Finance.
Date posted: March 11, 2019. Answers (1)
- State the Reasons Why Commercial Banks Prefer To Lend Short Term Loans(Solved)
State the Reasons Why Commercial Banks Prefer To Lend Short Term Loans
Date posted: March 11, 2019. Answers (1)
- Give the Requirements for Raising Loan(Solved)
Give the Requirements for Raising Loan
Date posted: March 11, 2019. Answers (1)
- State the Conditions under Which Loans Are Ideal.(Solved)
State the Conditions under Which Loans Are Ideal.
Date posted: March 11, 2019. Answers (1)
- Describe the following.
a)Public limited companies.
b)Private limited companies.(Solved)
Describe the following.
a)Public limited companies.
b)Private limited companies.
Date posted: March 11, 2019. Answers (1)
- Define a Holding company.(Solved)
Define a Holding company.
Date posted: March 11, 2019. Answers (1)
- Describe the types of business organizations.(Solved)
Describe the types of business organizations.
Date posted: March 11, 2019. Answers (1)
- State and explain the objectives of a business.(Solved)
State and explain the objectives of a business.
Date posted: March 11, 2019. Answers (1)
- State and explain the four managerial finance functions.(Solved)
State and explain the four managerial finance functions.
Date posted: March 11, 2019. Answers (1)
- List the factors that a company must consider when using creditors finances.(Solved)
List the factors that a company must consider when using creditors finances.
Date posted: March 11, 2019. Answers (1)
- List the importance of long term needs to a company.(Solved)
List the importance of long term needs to a company.
Date posted: March 11, 2019. Answers (1)
- List the tools used by a financial manager to manage his finances.(Solved)
List the tools used by a financial manager to manage his finances.
Date posted: March 11, 2019. Answers (1)
- What is financial management?(Solved)
What is financial management?
Date posted: March 11, 2019. Answers (1)
- Define the term Business finance.(Solved)
Define the term Business finance.
Date posted: March 11, 2019. Answers (1)