Meaning A commercial contract in which the lessor lets the lessee use an asset in lieu of periodical payments for the usually long period. Sales aid lease In case, the lessor enters into any tie up arrangement with manufacturer for the marketing, it is called sales aid lease.
It is instead recorded on the income statement as an expense.
Ross, Randolph Westerfield, Jeffrey Jaffe; About the Author Natasha Gilani has been a writer sincewith work appearing in various online publications.
There are various financing sources available, including bank debt, private placement and commercial paper on a fixed or floating-rate bases. In a bipartite lease, there are two parties.
The owner of the asset is responsible for all maintenance costs and other operating costs associated with the leased asset. In it, some of the building or property expenses are borne by the tenant. The lessee has a bargain purchase option and it is certain at the date of inception that the option will be exercised.
The term of a lease is very small compared to the finance lease. Under a financial lease, an option of purchase of the asset is given at the end of the contractual period.