Introduction, Types of Lease, Operating, Financial, Sale & Back, Leveraged, Direct, Primary & secondary & other types of lease.

1. PRESTIGE INSTITUTE OF MANAGEMENT
GWALIOR
Presented By:
Deepanshu Goyal
Devendra Singh Rathore
Meghna Sharma
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2. TYPES OF LEASING 2

3. INTRODUCTION
• LEASING IS A METHOD OF ACQUIRING THE RIGHT TO USE
EQUIPMENT FOR A CONSIDERATION.
• CONTRACT BETWEEN LESSOR AND LESSEE.
• FIXED TENURE.
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4. DEFINITION
IAS NO - 17, defines leasing as “an agreement
whereby the lessor conveys to the lessee in return
for rent, the right to use an asset for an agreed
period of a time.
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5. TYPES OF LEASE
• OPERATING LEASE
• FINANCIAL LEASE
• SALE & LEASE BACK
• LEVERAGED LEASE
• DIRECT LEASE
• PRIMARY AND SECONDARY LEASE
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6. OPERATING LEASE
An operating lease is an agreement in
which the lessee acquires the use of an
asset on period-to-period basis.
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7. FINANCIAL LEASE
Financial lease involves a longer term
commitment on the part of lessee. They
are non- cancellable..
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8. SALE AND LEASE BACK
The firm sells an asset, already owned by
it to the another party and hires it back
from the buyer.
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9. LEVERAGED LEASE
Leveraged lease has three parties – lessor,
lessee and the financier or lender. Equity is
arranged by the lessor and debt is financed by
the lender or financier.
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10. DIRECT LEASE
The lessor acquires the assets from the
manufacturing company directly or arranges
the desired equipment to be purchased by the
leasing company. A direct lease is a simple
lease where the asset is either owned by the
lessor or he acquires it
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11. PRIMARY & SECONDARY LEASE
• Equipment or property lease time-bound
with rental payments higher for the starting
periods, but decreasing as the lease period
winds down.
• Agreement or arrangement in which the
heavier charges are levied, or greater
benefits accrue, towards the end of its
duration or term.
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12. OTHER TYPES OF LEASE
• Dry Lease
• Wet Lease
• 3N Lease (Triple Net Lease)
• Percentage Lease
• Cross border Lease
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13. MAJOR PLAYER IN LEASE MARKET
INDIA GLOBALLY
• First Leasing Company of India Ltd.
• Bajaj Finance
• Shriram Transport Finance Corporation
• Capital Trust
• VLS Finance
• Mansi Finance (Chennai)
• Apple Finance
• United Credit Financial Services
• AERCAP (Netherland)
• AERGO CAPITAL (Ireland)
• AIRBUS ASSET MANAGEMENT
(France)
• AIRCASTLE INVESTMENT (USA)
• AIRCORP INCORPORATED (USA)
• ALLCO EQUIPMENT LEASING
(Australia)
• ATR ASSET MANAGEMENT (France)
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