A tax-oriented equipment lease whereby the lessor achieves its desired rate of return through a combination of the rental payments, depreciation, and the fair market value of the equipment at the end [..]

Equipment lease in which the total periodic payments exceed the cost of the asset being leased. The lessor recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate [..]

This glossary is a practical and easy-to-use guide to equipment financing & leasing terminology and vocabulary. While effort has been made to present accurate and up-to-date definitions, this glos [..]

Interest rate that changes throughout the life of a loan.

Working relationship between an equipment leasing and financing company and an equipment vendor to provide financing to stimulate the vendor's sales. The equipment financing company leases or con [..]

referring to a trade-in of leased or financed equipment, during the term of the lease or loan, for a newer, more advanced model.

Sometimes called economic life, useful life refers to the period of time during which an asset is usable and has economic value. To qualify as an operating lease, the property must have, at the end of [..]

System developed and adopted by nearly all states to protect secured parties' security interests in personal property.

Document filed with the Secretary of State and/or other public agencies. It describes for the public record the nature of the relationship between the lessee/ borrower and the lessor/ lender. This fil [..]

Another term for a Tax Lease where, for IRS purposes, the lessor qualifies for the tax benefits of ownership, and the lessee is allowed to claim the entire amount of the lease rental as a tax deductio [..]