Full-payout lease

Full-payout lease

See: Financial lease

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 ?
It is not typical in the container leasing business for the equipment to be leased under lease purchase agreements or full-payout leases under which the customer agrees to pay sufficient rent for the lessor to recover the entire cost of the equipment.
What the credit analyst should know about securitization
Financial browser ?
Full browser ?