A method of financing capital equipment in which the business acquires use of the equipment immediately without having to buy it. Leasing can be more expensive than purchasing because of the loss of tax benefits from depreciation, but it frees up capital for other business uses. [go back to glossary list
Hiring of capital goods or equipment to avoid the cost of buying them.
Leasing is classified into two categories: finance leasing and operating leasing. Finance leasing is similar to loans extended by banks in that leasing companies procure investment funds for corporations that plan to make capital investment. Leasing firms should have considerable fund-raising capability in finance leasing but this is difficult now due to the weakness of parent companies, including banks.In operating leasing, a residual portion of the price of an asset after the expiration of the leasing term will be assessed before leasing and the leasing fee will be decided based on that value minus the residual portion. Demand for operating leasing is growing, replacing that for finance leasing, though operating leasing is premised on the existence of used asset markets.
A type of entrepreneurial activity aimed at investing one's own or attracted funds. A lessor grants use of the property for a fixed period of time to a lessee for an agreed fixed charge paid in annual periodic installments
A term referring to the “Use only†of a vehicle, by a customer entering into an agreement with a finance company, it includes both payout and residual risk leasing such as Contract Hire or an Operating Lease for consumers.
a contract that is typically entered into by a lessee (the individual who will be driving the given vehicle) and a lessor (the individual or company that actually owns the vehicle)
A way to finance equipment, fixtures or buildings. It is a type of financing for the full amount of the equipment, etc., and eliminates the need for a business to put a large sum of cash into the purchase. There is no standard way to lease. You can lease with or without maintenance, by the month, year, or several years, and with or without the option to purchase.
a finance agreement which provides the lessee the right, for a stated period of time, to use property owned by the lessor (Financier), in return for a series of payments (lease rentals) by the lessee to the lessor. The lessee has possession and use of the property for the term of the lease, in consideration for which the lessee makes the lease payments to the lessor. The lessor retains legal ownership receiving all lease payments under the agreement and is entitled to the return of the property, which is the subject of the lease.
Acquisition from private or commercial source s other than by purchase. Also referred to as rent or hire. [D03525] GAT
As opposed to buying a harness horse, people have the option of leasing one. Just like some people lease a car instead of paying the money up-front, leasing a horse gives people use of a horse without large capital outlay. An agreement or contract must be drawn up between the two parties, and the lease must be registered with the relevant controlling body.
A contract under which the owner agrees to rent out goods for a fixed period and for a fixed payment.
Renting equipment through financing.
Payment of a sum each month in return for the use of a vehicle instead of buying it outright. The two basic types of leases are open-end leases, under which you pay an additional amount at the end of the term and acquire ownership of the vehicle; and closed-end leases, under which ownership reverts to the leasing agency at the end of the term.
A plan much like renting in which one pays a set sum of money each month for the use of a vehicle rather than purchasing it outright. An open-end lease allows one to pay an additional amount at the end of the agreed upon term to purchase the vehicle. A cl
In Germany, leasing is the renting or letting of moveables or immovables over time, for consideration, by a financing institution, which is called a leasing company, or by the manufacturer of the assets in question.
Many industrial buyers lease instead of buy heavy equipment like machinery & trucks. The lessee gains a number of advantages: conserving capital, getting the latest products, receiving better service, and gaining some tax advantages. The leaser often ends up with a larger net income and the chance to sell to customers who could not afford outright purchase.
Hiring equipment, such as a car or a piece of machinery, to avoid the capital cost involved in owning it. In some companies it is advantageous to use capital for other purposes and to lease some equipment, paying for the hire out of income. The equipment is then an asset of the leasing company rather than the lessor. Sometimes a case can be made for leasing rather than purchasing, on the grounds that some equipment quickly becomes obsolete.
