Growth did not occur because the fragile cash structure that exists in South America can allow for a deviation of cash flow to uses different from those originally intended. This sort of deviation can not occur with leasing because leasing does not provide for delivery of cash but rather of tangible and productive assets, which can not be diverted from their intended purpose.
An overview of the leasing business in Latin America, including a description of its role in modern life, its potential use as a tool to satisfy market demand, and its legal nature and the regulations that govern it are analyzed herein. Equipment leasing has become the dominant and most feasible tool for effectivizing sales of capital goods, equipment, machinery and technological devices to Latin America.