Long-term, noncancellable rental agreement.
a contract between lessor and lessee whereby the lessor, purchases the goods and the lessee pays rentals that enable the lessor, over the period of contract, to recover all or virtually all costs including interest
a means of financing capital equipments
lease in which the service provided by the lessor to the lessee is limited to financing equipment. All other responsibilities related to the possession of equipment, such as maintenance, insurance, and taxes, are borne by the lessee. A financial lease is usually non- cancellable and is fully paid out (amortized) over its term.
An expression oftentimes used in the industry to refer to a capital lease or a nontax lease. It is also a type of tax-oriented lease that was introduced by the Tax Equity and Fiscal Responsibility Act of 1982, to be effective in 1984, but later repealed by the Tax Reform Act of 1986.
Long-term, non-cancelable lease.
