16
Term Loans and Leases
OBJECTIVES
To explain the features of term loans and their amortisation schedule
To explain various forms of lease and its advantages and disadvantages
To examine whether leasing of an asset is preferable to its purchase
The issue of shares and debentures meets, to a great extent, the firm’s needs for long-term funds. Yet the significance of term loans and leases is no less significant. In view of certain specific advantages that they are widely used for meeting long-term fund requirements. The present chapter thus deals with the term loans and leases.
16.1 TERM LOANS
16.1.1 Basic Characteristics
Although term loans and debentures, both represent debt, yet they vary in their characteristics. In particular, term loans ...
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