Management Notes

Reference Notes for Management

Types of Leases | 5 Types of Lease Explained in Detail | Financial Management

Types of Leases

Types of Leases

Types of Leases

➦ A lease is a contract between the owner of an asset (the lessor) and the user of the asset (the lessee),under the contract the lessor grants the lessee the right to use the assets for an an agreed period of time and in return, the lessee agrees to make a series of periodic payments (or lease rent) the lessor.

➦ We can classify leases in number of ways but some of the major types of leasing are as follow:

  1. Operating Leases/Service Lease/Maintenance Lease
  2. Financing Leases
  3. Sale and Leaseback
  4. Direct Lease
  5. Leverages Leases/ Lease Lender

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