Finance leasing isn’t quite like financing loans in a traditional manner. Under a financial lease the lender buys the property that the borrower chooses and then the borrower pays rent and interest on the property. At the end of the lease the borrow can then pay off the difference and purchase the property outright. CM
Unlike financing loans traditionally a financial lease has the lender buying a property outright and charging the borrow for its use. When finance leasing the borrower may have the option of buying the asset outright later on if they can pay the difference. CM
In a financial lease the borrower chooses an asset, but unlike financing loans traditionally, the lender themselves buys the asset and charges the borrower rent for its use. Also in a finance leasing situation the the borrower may have the option paying off the remainder and buying the asset outright. CM
Finance leasing differs in a few ways from financing loans traditionally. In a financial lease the borrower chooses an item that the lender then purchases. The borrower then pays rent and interest for the continued use of the asset while the lender maintains economic ownership. At the end of the lease the borrow may also…