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Leasing and the Small Firm

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by Michael Long, Ph.D. and Ben J. Sopranzetti Ph.D.
Fall 2002 issue

What types of small firms would be the strongest candidates for the use of lease financing? Although the motivations behind the lease/buy decision as it applies to large, publicly traded corporations has been well studied, because of a paucity of available data, a parallel examination of the lease/buy decision as it applies to small, privately held firms has yet to be conducted. However, small, privately held firms may have different reasons for leasing assets than do their larger counterparts and thus may present a different marketing challenge for lessors.