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 ?
and GFS Forex & Furtures signed new leases and IAT Reinsurance renewed; leasing a total of 20,000 s/f in 2006.
--Contributed by Michael Fleming, President of the Equipment Leasing Association (www.ELAOnline.com), and William Bosco, Principal of Leasing 101 (www.ChooseLeasing.org).
Up-Front Capital: Leasing doesn't require much capital up front--mostly the first month's payment.
The province of Sindh in general and its capital Karachi in particular has offered ample business opportunities to leasing sector.
The web site also provides an overview of a closed-end lease, the most common type of vehicle lease used by the automotive industry, sample disclosure forms required in leasing transactions, and a glossary of terms used in leasing.
Just remember that all leases should have the primary purpose of setting forth the terms of agreement between you and the company/person from which you are leasing goods.
For your protection, three leasing rules are vital:
Much more common is the leasing of hunting rights to an individual or group of hunters.
Leasing can be a complicated, arduous process, but with the enforcement of the Consumer Leasing Act of 1991, lessors (the leasing company) are required to spell out everything upfront: costs, terms, fees and conditions.
The Congress enacted the Consumer Leasing Act in 1976 as an amendment to the Truth in Lending Act, based on findings that a trend toward long-term leasing existed as an alternative to purchasing certain consumer items on credit and that consumers were not receiving adequate leasing cost disclosures.
It's also possible to evaluate the proposed transaction by doing a comparative present-value analysis of buying a car versus leasing. The net present value of a purchased car can be compared to the net present value of future lease payments.
But what makes leasing even more attractive - and affordable - is that you can deduct the business use portion of the lease payments.