As well as using contractors for its software installations, LOG is establishing a division of permanently employed technicians who service the software once its installed. Logica wishes to provide corporate cars/vans to these technicians to enable them to travel to client premises and is seeking Northpacs advice as to how to fund this efficiently. a. You recommend an option for Logica is for them to use lease finance. Explain to the clients who the parties to a lease are and distinguish between ‘operating leases’, ‘finance leases’ and ‘sale and lease-back leases’. b. Discuss 4 advantages of leasing. In your discussion outline one alternative method Logica could use to fund the acquisition of the vehicles and how that alternative could operate.

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