The lease can be for any period of time and is only subject
to the residual being no less than the depreciated value of
the asset being financed. It is an on balance sheet transaction
and also requires the user to bundle all of the components
of the solution.The borrower obtains the lease payments as
tax deductions. It is also limited by the fact that it relates
to the financing of goods, and is unsuitable for upgrades.Similarly
to a Hire Purchase, the borrower cannot pass on title of the
software licence to the lender.Leasing cannot be used to legally
finance a software licence.
