leasing


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Lease

An agreement between two parties whereby one party allows the other to use his/her property for a certain period of time in exchange for a periodic fee. The property covered in a lease is usually real estate or equipment such as an automobile or machinery. There are two main kinds of leases. A capital lease is long-term and ownership of the asset transfers to the lessee at the end of the lease. An operating lease, on the other hand, is short-term and the lessor retains all rights of ownership at all times.

leasing

the hiring out by one firm (the lessor) of an ASSET such as a factory building, piece of machinery or vehicle to another firm (the lessee) in return for the payment of an agreed rental. The lessor retains the ownership of the asset concerned and will repossess the asset on the expiry of the contract, or beforehand should the client require a replacement. A leasing arrangement can be useful to a client company in so far as it enables it to employ assets without having to tie up large amounts of capital for long periods of time. See LEASE, LEASEBACK, OFF-BALANCE SHEET FINANCING, FINANCE HOUSE.

leasing

the purchase of an ASSET (mostly buildings, machinery and vehicles) by a leasing company which retains the ownership of the assets and which then hires out the item for use by clients who pay an agreed RENT. Leasing is a useful source of INVESTMENT insofar as it enables individuals or companies to use assets without having to tie up large amounts of capital. See LEASE, OFF-BALANCE SHEET FINANCING.
References in periodicals archive ?
Typically, leasing is best for established companies, although it can occasionally be the right choice for a startup.
The extension of technology leasing is yet another example of the company's commitment to physicians and medical group practices," Emge said.
com, as the name suggests, provides an interactive tool to instantly evaluate leasing options from a number of financial sources.
Tim Greiner, vice president of leasing with the Gale Company, served as an in-house representative for the landlord.
Our experience over the years in every type of economic cycle shows that leasing becomes a more popular and attractive option when interest rates escalate," he said.
The ELA/Carmichael market study focuses on the leasing practices of healthcare providers, including hospitals, outpatient centers and physicians' offices.
Through this leasing program, NEC is also offering its line of storage disc arrays and storage management software.
The study uses econometric models that represent both full and restricted adjustment scenarios(a) in order to show the range of effects the potential absence of leasing would have on the economy: in effect the best/worst-case scenarios.
Korren, senior vice president and director of commercial leasing and operations, served as the executive in charge of supervising all of the firm's leasing activities within its approximately four million square foot Downtown portfolio.
Articles portraying leasing rules as inadequate continue to appear in the financial press.
And leasing a fleet of trucks might be a natural decision for your delivery company.