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Leasing

• The process by which a firm can obtain the use of certain fixed assets for which it must make a series of contractual, periodic, tax-deductible payments.

 
 Embedded terms in definition
 Assets
Firm
Fixed assets
Fixed asset
Series
 
 Referenced Terms
 Debt displacement: The amount of borrowing that Leasing displaces. Firms that do a lot of leasing will be forced to cut back on borrowing.

 Sales type lease: An arrangement whereby a firm leases its own equipment, such as IBM Leasing its own computers, thereby competing with an independent leasing company.

 
 Related Terms
 Net advantage to leasing

<< Lease versus purchase or lease versus buy decision Least squares >>

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