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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
All entities carrying out a Finance Leasing business in the UAE are encouraged to undertake a full review of their Finance Lease contracts in order to ensure they align with the requirements of the Law and, where necessary to approach the Central Bank for guidance on adjusting their licences.
Global Banking News-January 31, 2018--UAE central bank to regulate finance leasing contracts
The aim of collecting the finance leasing and factoring activities under one legal framework is that they are non-bank financing tools to serve economic projects, whether through providing the necessary funding for these projects to obtain their needs for activity tools and supplies without requiring full payment of the purchase price of the capital assets through finance lease, or by providing cash for these projects during doing business through factoring.
Some top companies are focusing on agricultural leasing, while others are moving from long-term, low-risk finance leasing to short-term, high-risk operating leases.
This was based on Tgeer's stellar performance, as the company had shown steady double digit growth in net profits and margins (that ranged between 28 per cent and 39 per cent) for the last three consecutive years, despite being the smallest finance leasing firm in the country.
"The Implementation Regulation of the Finance Leasing Law sets forth the provisions related to the contracts of the finance leasing.
Finance leasing and hire purchase remain popular choices with businesses, growing by 9% and 12% respectively in the 11-month period to November 2012.
At-a-glance fleet finance guide Finance leasing Long-term rental contracts, most likely for the life of the assets being financed.
Abdulrahman Al-Barak, the Shoura Council amended at its 16th session of its 3rd year of its fifth round the finance leasing system, registered real estate mortgage system and the stock market system....