Equipment Leasing Glossary

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.