Automotive suppliers use leasing far more than other industries.

Automotive suppliers use leasing far more than other industries.
But hardly anyone talks about the reason why – beyond favorable terms – it is so critical for this sector. It has less to do with interest rates or liquidity, and much more to do with a factor that many CFOs and treasurers underestimate.
The advantageous accounting treatment of leasing can also be leveraged by companies in other industries to improve their bank ratings and covenant calculations!