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Equipment Leasing Glossary
A Brief Overview of Leasing Terms
- Advanced Payments
- One or more rental payments paid at the start of a lease, in effect a deposit.
- Big Ticket Lease
- A leasing transaction for assets worth over £20m.
- Fair Market Value
- The open market value at which a product is bought and sold.
- Lease
- A contract whereby the Lessor buys an asset and gives you the right to use the asset for a pre determined period at an agreed cost.
- Lease Rate
- Rentals paid by the Lessee to the Lessor for use of an asset.
- Lessee
- The user of the asset or equipment. Lessor – The legal owner of the asset.
- Master Lease
- The contractual arrangement by which the Lessee may add other assets to a leasing arrangement without a new contract using the same basic terms and conditions.
- Middle Ticket Leasing
- A Leasing transaction for assets valued between £100k and £20m.
- Purchase Option
- Where the Lessee has this option, they have the right to purchase the asset at Fair Market Value or at a pre agreed price at the end of the leasing period.
- Renewal Option
- Where the Lessee has the option to extend the lease at the end of the leasing period.
- Residual Value
- This is the potential resale value of an asset at the end of the leasing term.
- Small Ticket Lease
- A leasing transaction for assets valued between £1000 and £100k.
Summary
Here is a list of terms and abbreviations covering leasing that you may find useful.
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Your Next Move!
Would you like to know more about leasing finance? Contact us on-line here or call 0800 458 9941.
Case Studies
As "commercial loan brokers" we have successfully financed many deals for our business customers in the past, here is just a small list that you may find of interest [more details].
As "commercial loan brokers" we have successfully financed many deals for our business customers in the past, here is just a small list that you may find of interest [more details].