This lease is also referred to as a conditional sales contract. It's typically non-cancelable although it offers the lessee the ability to acquire title to equipment at an agreed upon rate such as $1 or the fair market value.
a full payout, non-cancellable agreement in which you are responsible for maintenance, taxes and insurance
a lease in which the service provided by the lessor to the lessee is limited to financing equipment
a lease that is really not a lease for tax or accounting purposes
a lease that transfers substantially all the risks and rewards of owning and operating an asset to the lessee
a lease that transfers substantially all the risks and rewards of the ownership of an asset to the lessee
a lease whose obvious intent was to finance the ultimate ownership of the equipment, rather than simply collecting payments for the use of it, as would be a rental
an agreement that allows you (the lessee) to hire equipment or vehicles for a fixed period without the option of ownership
an arrangement between CAPITAL FINANCE (the lessor) and the client (the lessee) whereby CAPITAL
a non-cancellable, full-payout, agreement, in which the lessee is responsible for maintenance, taxes and insurance
a special type of three-party lease in which the lessor acts as a passive investor, a provider of money only to acquire property for use by the lessee
a tax-efficient tool to satisfy business needs without tying up capital
A financing tool whereby a Lessee can obtain title to the asset for a nominal amount or a guaranteed purchase amount. For tax reasons this form of lease is generally thought of as a conditional sales contract. Typically, a Finance Lease is non-cancelable through out the term of the lease and the end-user is accountable for taxes, maintenance, insurance and other costs of ownership.
A financing device whereby a Lessee can acquire title to the asset for a nominal amount or a guaranteed purchase amount. The lease is usually considered a conditional sales contract for tax purposes. Generally, a Finance Lease is noncancelable during the term of the lease; and the end-user is responsible for maintenance, taxes, insurance and other costs of ownership.
A lease which effectively transfers from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased property without transferring the legal ownership.
A lease used to finance the purchase of equipment; not a true lease. Finance leases are generally considered to be capital leases from an accounting perspective and non-tax leases from a tax perspective.
A lease that transfers substantially all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred.
(See Single Investor Lease.) Typically, a finance lease is a full-payout, noncancellable agreement, in which the lessee is responsible for maintenance, taxes, and insurance.
A form of leasing whereby the lessor expects to recover in full the capital cost of the asset, money costs and profit during the primary period of the lease.
A lease that extends through the major portion of the equipment's useful life. The lessee assumes the risks and responsibilities of owership over the duration of the lease and usually has the option to purchase the equipment for a nominal amount at the end of the lease term.
1). As most frequently used, a net lease which has as its purpose the financing of the use of property for a major portion of the property's useful life. The term is typically used in reference to leases written by third-party lessors (see third-party lessors). 2). A lease which meets the requirements of TEFRA Section 209 as amended by the TRA. 3). General term applied to most types of equipment leases. Typically, a finance lease is a full-payout, non-cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance.
These 4 terms describe leases that combine lower, fixed monthly payments with the guaranteed-in-advance right to purchase the equipment at the conclusion of the lease term at a pre-determined price. These leases generally do not qualify as deductible operating expense and must be amortized and depreciated. There are, however, some significant other tax benefits under I.R.S. section 179, that may be available to your business. See First Capital's " Taxes & Leasing" page for a more complete discussion .
1) General term applied to most types of equipment leases. Typically, a finance lease is a full-payout, non cancelable agreement, and the lessee is responsible for maintenance, taxes, and insurance. 2) An alternative definition is found in the Uniform Commercial Code, Article 2A, to designate a lease from a non-vendor lessor who acts solely as a funding source and does not deal directly in the equipment.
A lease that is used to effectively finance the purchase of assets. Also known as a purchase lease.
A lease where the lessor expects to recover the capital cost of the asset, money costs and his profit during the period of the lease.
A finance lease is a lease where the lessor transfers substantially all the risks and rewards of ownership of the asset to the lessee. (See also operating leases)
a capital lease. A financing device whereby a user can acquire use of an asset for most of its useful life. A finance lease may either be a “True Lease†or a “Conditional Sale Contract
Also referred to as a 'full payout' lease, this is a leasing contract providing for the lessee to pay a rental for minimum, noncancellable period of time (the 'primary period) which suffices in total to amortise (see 'Amortisation') the lessor's capital outlay incurred in the purchase of the asset to be leased. The rentals include an element of interest charges and profit. The whole of the rentals paid under a leasing agreement (excluding VAT) can be offset against the lessee's tax liability as a normal revenue expense (see 'Corporation Tax'). Where the asset is not fully amortised during the hire period the lease is called an 'operating lease' provided that not more than 90% of the asset value is amortised during the primary period. (see 'Lease' and 'Operating Lease')
An expression often used in the industry to refer to a capital lease or a non-tax lease.
Lease under which the lessor effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset and where legal ownership may or may not eventually be transferred (see operating lease).
Often, a full-payout agreement in which the customer, at the end of the lease term, assumes ownership of the vehicle or is provided with a purchase option. The lessee is usually responsible for maintenance, taxes and insurance.
Financial lease First call
An equipment-leasing arrangement that provides the lessee with a means of financing for the leased equipment; a common method for leasing motor carrier trailers.