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Lease financing
Lease - definition
 A lease is an agreement whereby the lessor conveys
to the lessee , in return for lease rent, the righ...
Characteristics of lease
 The Parties
 The Asset
 The Term
 The Lease Rentals
Importance of lease financing
 Leasing industry plays a very important
role in the economic development of a
country by p...
Types of Lease
Financial lease...
 It is non-cancelable in nature.
 The lessee is responsible for the
maintenance of the asset leased.
...
Types of assets included under such lease are :
 Ships
 Aircrafts
 Railway Wagons
 Land
 Building
 Heavy Machinery
...
Operating Lease...
 The lease is cancelable at short notice by
the lessee.
 The lessee has the option of renewing
the le...
Operating lease is generally given for :
 Computers
 Office equip
 Automobiles
 Trucks
 Other equip
 Telephones
 Wa...
 Sale and Leaseback:
 Owner of the asset sells it to the lessor, and
gets the asset back under the lease
agreement.
 Ow...
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leasing

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leasing

  1. 1. Lease financing
  2. 2. Lease - definition  A lease is an agreement whereby the lessor conveys to the lessee , in return for lease rent, the right to use an asset for an agreed period of time.  A lessor is the owner of the asset where as lessee is the user of the asset .  The lease period may be for 1 hour , day , month, years .
  3. 3. Characteristics of lease  The Parties  The Asset  The Term  The Lease Rentals
  4. 4. Importance of lease financing  Leasing industry plays a very important role in the economic development of a country by providing money incentives to lessee  The lessee does not have to pay the cost of asset at the time of signing the contract of lease
  5. 5. Types of Lease
  6. 6. Financial lease...  It is non-cancelable in nature.  The lessee is responsible for the maintenance of the asset leased.  The lease generally provides for the renewal of the lease on expiry of the lease contract.  It is taken for an long period of time ie 25 yrs , 100 yrs etc
  7. 7. Types of assets included under such lease are :  Ships  Aircrafts  Railway Wagons  Land  Building  Heavy Machinery  Diesel Generating Sets etc
  8. 8. Operating Lease...  The lease is cancelable at short notice by the lessee.  The lessee has the option of renewing the lease after the expiry of the lease period  Asset maintenance and insurance etc. is the responsibility of the lessor and he charges for the same.  It is a high risk lease to the lessor, as any time it may be cancelled by the lessee.
  9. 9. Operating lease is generally given for :  Computers  Office equip  Automobiles  Trucks  Other equip  Telephones  Walki-talki
  10. 10.  Sale and Leaseback:  Owner of the asset sells it to the lessor, and gets the asset back under the lease agreement.  Ownership transfer from the original owner to the lessor, who again leases out the asset.  Immediate financing to the seller company, whose funds are tied up in the asset.

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