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  • Lease Finance

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    Gora Singh
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    A lease is a written agreement between two parties where one party rents property or equipment from the other for a specified period of time. The party renting the property is called the lessee, while the property owner is the lessor. There are different types of leases, including operating leases, finance leases, direct leases, and sale-leaseback leases. Leases provide advantages for both lessors and lessees, such as increasing sales and avoiding large initial cash outlays, but they also present disadvantages like competitive markets and penalties for early termination.

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    A lease is a written agreement between two parties where one party rents property or equipment from the other for a specified period of time. The party renting the property is called the lessee, while the property owner is the lessor. There are different types of leases, including operating leases, finance leases, direct leases, and sale-leaseback leases. Leases provide advantages for both lessors and lessees, such as increasing sales and avoiding large initial cash outlays, but they also present disadvantages like competitive markets and penalties for early termination.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12 views4 pages

    Lease Finance

    Uploaded by

    Gora Singh
    A lease is a written agreement between two parties where one party rents property or equipment from the other for a specified period of time. The party renting the property is called the lessee, while the property owner is the lessor. There are different types of leases, including operating leases, finance leases, direct leases, and sale-leaseback leases. Leases provide advantages for both lessors and lessees, such as increasing sales and avoiding large initial cash outlays, but they also present disadvantages like competitive markets and penalties for early termination.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 4

    MEANING

    Many companies can’t afford to buy buildings or large


    pieces of equipment, so they rent them. When a
    company signs a rental contract for a period of time,
    the contract is considered a lease. A lease contract
    is a written agreement between two parties that
    identifies the terms of the lease as well as the leased
    property. The leased property’s owner is called
    the lessor and the company renting the property is
    considered the lessee.
    Types
    .
    Operation Lease
    Finance Lease
    Direct Lease
    Straight Lease
    Modified Lease And Leveraged Lease
    Sale Lease Back
    Primary And Secondary
    Floating Rental Lease
    Sale Aid Lease
    Domestic And international
    Foreign to Foreign Lease
    Advantage of lease for lessor
    and lessee
    For Lessor
     Increase Sales
     Quick Returns
     Tax Benefits
     Utilize of Assets
    For Lessee
     Avoidance of initial cash outlay
     Time save
     Easy and without any security
     Flexible
    Disadvantage of lease for
    lessor and lessee
    For Lessor
     Competitive markets
     Price level changes
     Management cashflow
     Long time for recovery cost
    For Lessee
     Penalty of termination of contract
     Ownership
     Costly
     No alternation of asse

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