afinancialagreementin which afinancecompanypaysforequipmentthat acustomerwants, such as acarorcomputer, and thecustomerpaysthem to use it. Depending on theagreement, thecustomermay own thegoodsorbuythem for areducedpriceat the end of thelease
If it is not afinanceleasethen it is an operating lease.
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Wikipedia
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A lease is classified as afinanceleaseif it transfers substantially all the risks and rewards incidental to ownership of an asset.
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Thus in case offinanceleasewe can say that notional ownership is passed to the lessee.
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The aircraft may be provided to the airline on the basis of an operating lease or afinancelease.
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Lessor accounting will be similar to current directfinanceleaseaccounting, though with the potential for recognizing a profit at the beginning of the lease term in certain circumstances.
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Wikipedia
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A leasing agreement which transfers most of the risks and rewards of ownership, usually for the life of the asset, is known as afinancelease.
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Wikipedia
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Normally, on afinancelease, the property reverts to the borrower at the end of the lease for a nominal sum.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
If it is classified as afinancelease, it is included in net investment and net worth.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
It is called afinanceleaseprecisely because it is a conventional way of financing the purchase of an asset.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
Some may wish to do so through a simplefinanceleaseso that the franchisee does his own maintenance.
From the
Hansard archive
Example from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0
These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.