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Purchase Option

Many lease agreements contain a clause within the lease allowing for the lessee to purchase the asset at some point during the lease or at termination of the lease. Purchase options also exist with the securities market and in many various contracts especially those dealing with real estate rental.

Lease or Buy


Fixed assets are normal in business operations.  However, financing those assets is the critical issue.  If you buy the asset outright, you tie up capital that can be used to expand operations or keep overall costs low in operating the company.  [...]