📝 One-liners · 65 cards
EQUIPMENT LEASE, LEASE FINANCING
What is a lease in the context of equipment financing?
A lease is a contractual arrangement where the owner (lessor) grants the right to use an asset to another party (lessee) for a specified period in exchange for periodic rental payments.
What is a 'closed-end lease' in equipment financing?
Lessee returns asset at end; no purchase option exists.
What is the key difference between a finance lease and an operating lease?
A finance lease transfers substantially all risks and rewards of ownership to the lessee, while an operating lease does not transfer ownership risks and is more akin to a rental arrangement.
What is an 'open-end lease' and what risk does the lessee bear?
Lessee bears residual value risk at lease end.
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