Home > Terms > English (EN) > lease
lease
Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or lease payments. A long-term written lease (also called a deed) creates a leasehold interest which in itself can be traded or mortgaged, and is shown as a capital asset in a firm's books. Advantages of leasing include (1) lack of restrictive covenants (common in bank loans and bond indentures), (2) conservation of capital (because the lessor provides 100 percent financing), (3) tax savings (in most cases), (4) avoidance of the risk of obsolescence, and (5) relative ease of obtaining a lease as opposed to a comparable bank loan. In most cases a lease, in effect, is a hire-purchase agreement without the requirement of an initial deposit and the added advantage of tax benefits. See also capital lease, operating lease, and, sale and leaseback.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Accounting
- Category: Auditing
- Company:
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Billy Morgan
Sports; Snowboarding
The British snowboarder Billy Morgan has landed the sport’s first ever 1800 quadruple cork. The rider, who represented Great Britain in the 2014 Winter Olympics in Sochi, was in Livigno, Italy, when he achieved the man-oeuvre. It involves flipping four times, while body also spins with five complete rotations on a sideways or downward-facing axis. The trick ...
Marzieh Afkham
Broadcasting & receiving; News
Marzieh Afkham, who is the country’s first foreign ministry spokeswoman, will head a mission in east Asia, the state news agency reported. It is not clear to which country she will be posted as her appointment has yet to be announced officially. Afkham will only be the second female ambassador Iran has had. Under the last shah’s rule, Mehrangiz Dolatshahi, a ...
Weekly Packet
Language; Online services; Slang; Internet
Weekly Packet or "Paquete Semanal" as it is known in Cuba is a term used by Cubans to describe the information that is gathered from the internet outside of Cuba and saved onto hard drives to be transported into Cuba itself. Weekly Packets are then sold to Cuban's without internet access, allowing them to obtain information just days - and sometimes hours - after it ...
Asian Infrastructure Investment Bank (AIIB)
Banking; Investment banking
The Asian Infrastructure Investment Bank (AIIB) is an international financial institution established to address the need in Asia for infrastructure development. According to the Asian Development Bank, Asia needs $800 billion each year for roads, ports, power plants or other infrastructure projects before 2020. Originally proposed by China in 2013, a signing ...
Spartan
Online services; Internet
Spartan is the codename given to the new Microsoft Windows 10 browser that will replace Microsoft Windows Internet Explorer. The new browser will be built from the ground up and disregard any code from the IE platform. It has a new rendering engine that is built to be compatible with how the web is written today. The name Spartan is named after the ...
Featured Terms
Ayana
Set on 77 hectares of cliff-top tropical gardens perched 35 meters above Jimbaran Bay, AYANA Resort and Spa Bali enjoys majestic views and a secluded ...
Contributor
Featured blossaries
Sanket0510
0
Terms
22
Blossaries
25
Followers
10 Bizarre ways Dreams and Reality Intersect
Browers Terms By Category
- Social media(480)
- Internet(195)
- Search engines(29)
- Online games(22)
- Ecommerce(21)
- SEO(8)
Online services(770) Terms
- Poker(470)
- Chess(315)
- Bingo(205)
- Consoles(165)
- Computer games(126)
- Gaming accessories(9)
Games(1301) Terms
- Dating(35)
- Romantic love(13)
- Platonic love(2)
- Family love(1)
Love(51) Terms
- Body language(129)
- Corporate communications(66)
- Oral communication(29)
- Technical writing(13)
- Postal communication(8)
- Written communication(6)
Communication(251) Terms
- Wedding gowns(129)
- Wedding cake(34)
- Grooms(34)
- Wedding florals(25)
- Royal wedding(21)
- Honeymoons(5)