| debt displacement | The amount of borrowing that leasing displaces. Firms that do a lot of leasing will be forced to cut back on borrowing.
|
 |
|
|
| direct leases | A lease under which a lessor buys equipment from a manufacturer and leases it to a lessee.
|
|
|
|
| financial leases | A long-term noncancelable lease, generally requiring the lessee to pay all maintenance fees.
|
|
|
|
| lessee | One that receives the use of assets under a lease.
|
|
|
|
| lessor | One that conveys the use of assets under a lease.
|
|
|
|
| leveraged lease | Tax-oriented leasing arrangement that involves one or more third-party lenders.
|
|
|
|
| off–balance-sheet financing | Financing that is not shown as a liability on a company's balance sheet.
|
|
|
|
| operating lease | Type of lease in which the period of contract is less than the life of the equipment and the lessor pays all maintenance and servicing costs.
|
|
|
|
| sale and lease-back | An arrangement whereby a firm sells its existing assets to a financial company which then leases them back to the firm. This is often done to generate cash.
|
|
|
|
| sales-type leases | An arrangement whereby a firm leases its own equipment, such as IBM leasing its own computers, thereby competing with an independent leasing company.
|