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Finance Lease

   Also found in: Wikipedia 0.01 sec.
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.


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Finance Lease Finance lease if often use to fund business capital purchases such as computer equipment and cars.
A novated lease is a three way arrangement between employee, financier and your employer, where the obligation to meet the repayments under the finance leases is with the employer.
A finance lease exists where the risks and rewards of ownership have effectively transferred from the landlord to the tenant.
 
 
 
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