A working relationship between a financing source and a vendor to provide financing to stimulate the vendor's sales. The financing source offers leases to the vendor's customers. The vendor’s leasing firm substitutes as the captive finance company of a manufacturer or distributor through the extension of leasing to customers, provisions o [..]

A working relationship between a financing source and a vendor to provide financing to stimulate the vendor's sales. The financing source offers leases to the vendor's customers. The vendor’s leasing firm substitutes as the captive finance company of a manufacturer or distributor through the extension of leasing to customers, provisions o [..]

One or more lease payments required to be paid to the lessor at the beginning of the lease term. A lease, commonly paid “in advance” requires the first payment up front. The lessor can negotiate any number of additional rental to be paid in advance with the first month’s rent. Broker

Type of lease classified and accounted for by a lessee as a purchase and by the lessor as a sale or financing, if it meets any one of the following criteria: (a) the lessor transfers ownership to the lessee at the end of the lease term; (b) the lease contains an option to purchase the asset at a bargain price; (c) the lease term is equal to 75 perc [..]

The means for a business to recover the cost of a purchased asset over time, through periodic deductions or offsets in income. Depreciation is considered a tax benefit because the depreciation deduction result in a reduction in taxable income, thereby lowering the firm’s tax liability. Equipment Schedule

An option to purchase leased property at the end of the lease term at its then fair market value. The lessor does not have the ability to retain title to the equipment if the lessee chooses to exercise the purchase option. Funding Source

A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined payment. Lease Agreement

The user of the equipment being leased.

The party to a lease agreement who has legal or tax title to the equipment, grants the lessee the right to use the equipment for the lease term, and is entitled to the rentals.

A lease where payments to the lessor do not include insurance and maintenance, which are paid separately by the lessee.