Direct Financing Lease| Lease Financing
Direct Financing Lease
Different Types of Lease
Lease Financing
Management Notes
A direct financing lease is a financing arrangement in which the lessor acquires assets and leases them to its customers, with the intent of generating revenue from the resulting interest payments. Under this arrangement, the lessor recognizes the gross investment in the lease and the related amount of unearned income.
In simple words, direct financing lease results when a lessor owns or acquires the assets that are leased to a given lessee. In other words, the lessee did not previously own the assets that it is leasing. The lessor may be the manufacturer of the assets, financial institution or professional lessor.
(Founder of Management Notes)
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
Latest posts by Smirti (see all)
- Frictional Unemployment: Meaning, Causes, Examples & Why It Happens - December 5, 2025
- How Business Law Shapes Everyday Business Decisions? - August 28, 2025
- Multi-Channel Inventory Management: Strategies, Tools, and Best Practices for Success - March 26, 2025
Pingback: Indirect Finance - Financial Management | Management Notes
Pingback: Entrepreneurial Process - Entrepreneurship | Management Notes
Pingback: Investment Process- Investment Decision | Finance | Management Notes
Pingback: Primary Vs Secondary Market - Financial Markets| Management Notes