Types of Financial Lease
Leverage Lease: The lessor which is a leasing company provides the equity capital, while the banks and financial institutions provide the term loans for the purchase of leased assets. The lessee is the beneficiary of the agreement.
Sale & lease back: The Company owning an assets sells it to a leasing company and gets it back on lease from that leasing company. The freeing funds can be utilised for the other purposes by the company.
Cross border lease or International Lease: There are international leases with the lessor supplying the equipment being placed in one country and the lessee is from the other country.
Foreign to Foreign Lease: In this case there are 3 parties the manufacturer is in one country, lessor is in one country and the lessee who is the beneficial user is in a third country.
Ex: The leasing company which is in Japan purchases the aircraft from Chinese company and lease it to African company. In this case Japanese company acts a financier to the Indian company.
Tags: cross border, finance, financial, Financial Lease, Foreign, Foreign Lease, Foreign to Foreign, Foreign to Foreign Lease, International, International Lease, Lease, lease back, Leverage, Management, of, sale, Types
By: Management Duniya
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