Financial planning, career development and investing information - Money-Zine.com
arrowHome arrow Definitions arrow Investing Dictionary arrow Lease
Custom Search

Lease

A Lease is an agreement, or contract, entered into by two parties:

  • Lessor - the party that gives the lessee the right to use the asset or property
  • Lessee - the party that agrees to pay the lessor for the use of the property or asset

The most common lease agreement in the corporate environment is the lease on a building or facility.  There are two basic kinds of leases:

  • Capital Lease - this type of lease involves the use of an asset over most of its useful life, therefore the arrangement is similar to a long term financing agreement
  • Operating Lease - in this type of lease, the lessor grants the lessee the use of the property for a limited period of time, while the risks and rewards of ownership continue to reside with the lessor.
 
Home
News and Commentary
Careers Guide
Financial Planning Guide
Investing Guide
Free Calculators
Definitions
Downloads
WebLinks
SiteMap
Money-Zine.com copyright 2004 - 2012