Finance Lease


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Finance Lease

An agreement where the lessor receives lease payments to cover its ownership costs. The lessee is responsible for maintenance, insurance, and taxes. Some finance leases are conditional sales or hire purchase agreements.

Capital Lease

A long-term lease in which the lessee must record the leased item as an asset on his/her balance sheet and record the present value of the lease payments as debt. Additionally, the lessor must record the lease as a sale on his/her own balance sheet. A capital lease may last for several years and is not callable. It is treated as a sale for tax purposes. It is also called a financial lease.
References in periodicals archive ?
The targeted acquisition is expected to further strengthen the Group's existing finance lease business through Jiashi's extensive experience in the finance leasing business, especially on tourism, distant marine fisheries industry, and car leasing to individuals.
Net rental and finance lease income, otherwise, fell 24% to QR511.
The transaction, which is structured as a 15-year, fixed coupon full-payout finance lease, is the first ever Korean financing to be arranged covering the entire cost of a brand new A380 aircraft.
The third quarter results included lease rental and finance lease revenues of USD180.
a sino-foreign joint stock limited company incorporated in the People's Republic of China) (Stock Code: 00991) ANNOUNCEMENT CONNECTED TRANSACTION FINANCE LEASE CONTRACT
As part of their service offer, Macquarie Leasing will accept American Express for monthly payments for new commercial hire purchase, chattel mortgage and finance lease agreements.
COMAC Aircraft COMAC establishes finance lease company for C919 sales.
Broadly speaking there are two types of lease, namely, the capital or finance lease, and the operating lease.
A finance lease is treated like an installment sale whereby the lessee recognises the asset and fully depreciates it in the balance sheet.
This results from the related party nature of both the original transfer of the vessel and the subsequent finance lease.