Sales-type lease

An arrangement whereby a firm leases its own equipment, such as Acer leasing its own computers, thereby competing with an independent leasing company.

Similar financial terms

True lease
A contract that qualifies as a valid lease agreement under the Internal Revenue code.

Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.

Safe harbor lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the lessee, if the lessee could not use them, to a lessor that could use them.

Operating lease
Short-term, cancelable lease. A type of lease in which the period of contract is less than the life of the equipment and the lessor pays all maintenance and servicing costs.

Net lease
A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.

Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.

Leveraged lease
A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender a lien on the assets and a pledge of the lease payments to secure the borrowing.

Lease Rate
The payment per period stated in a lease contract.

A long-term rental agreement, and a form of secured long-term debt.

Break-even lease payment
The lease payment at which a party to a prospective lease is indifferent between entering and not entering into the lease arrangement.

Capital lease
A lease obligation that has to be capitalized on the balance sheet.

Cost of lease financing
A lease's internal rate of return.

Precious Metals Lease
A vehicle or technique used to finance precious metals inventories. It is related to the term structure of precious metals prices.

Digg the financial term Digg it!
Share financial term on facebook! Share on Facebook
Add to Yahoo My Web Add to Yahoo!
Add to Google bookmarks! Add to Google
Add financial term to Add to
Add financial term to Reddit! Add to Reddit
Add financial term on Spurl Add to Spurl
Add financial term to Furl Add to Furl
E-mail term to a friend! E-mail term to friend!
Printer friendly version Printer friendly version

Did you know?

Credible signal

A signal that provides accurate information; a signal that can be distinguish among senders.

Popular terms

About us  About
Contact us  Contact us
Bookmark us