finance lease
Sign in to saveAlso known as lease, finance leasing, leasing, capital leasing, sales lease
financial product
~11 min read
Encyclopedic overview
A finance lease (also known as a capital lease or a sales lease) is a type of lease in which a finance company is typically the legal owner of the asset for the duration of the lease, while the lessee has operating control over the asset and some share of the economic risks and returns from the change in its valuation.
More specifically, it is a commercial arrangement where:
Excerpted from Wikipedia’s “finance lease” article, available under the CC BY-SA 4.0 licence.