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Lease financing, the different types of leases, tax effects, evaluation by the lessee and evaluation by the lessor and other rea - Research Paper Example
Finance & Accounting
Pages 6 (1506 words)
Lease financing, the different types of leases, tax effects, evaluation by the lessee and evaluation by the lessor and other reasons for leasing. Contents Introduction 3 Research objectives 3 Literature Review 3 Conclusion 9 Reference 10 Introduction Flexibility makes leasing an attractive and effective form of financing…
Research objectives The research paper will try to analyze the different types of leasing and the effects of the leasing on the lessor and lessee. Literature Review In order to obtain business equipment and supplies that can shed its effects on the flow of money, one can rely upon lease financing as the possible way to straight up capital. Recent surveys prompt that more than 80% of the business organizations in the United States rely on this alternative at minimum one of the equipment acquisitions. It is forecasted that almost 95% would lease in the future. Lease financing is often referred to as “lease”. (Lee, 2003, p. 8). It is a contractual agreement involving two parties the lessor and lessee. The lease can be defined as a legal document that must be reviewed by an experienced attorney. The company acts as the lessor grants the individual or group acting as the lessee leasing the product or equipment. The contract assigns the lessee to operate the equipment for some pre specified time. In the period the lessee is required to make monthly payments to the lessor for providing the opportunity. Lease can be categorized into the following: lease of finance and lease of operation, sale and lease back along with direct lease, lease of single investor and leveraged lease, domestic lease and international lease (FLA, n.d.). ...
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