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Finance
Lease
A Finance Lease is an
agreement between the
‘owner’ of the
equipment, the Lessor and the
‘user’, the
Lessee. All costs such as
equipment, hardware,
software, installation,
training, commissioning,
maintenance, services etc can
all be included in the
agreement. The lessee is
responsible for maintaining
and insuring the
equipment.
At the end of the lease
term the Lessee chooses
to:
1. return the
equipment
2. continue to lease the
original equipment, or
upgrade the equipment for
new
A Finance Lease is
recorded as an asset on your
balance sheet and the lease
rentals are shown as a
liability. A Finance Lease is
typically structured between
1 and 5 years with the
payment being fixed. Payments
can be made on a monthly,
quarterly or yearly basis.
Additional equipment can also
be ‘Added on’ for
an increase in the monthly
rental, or the equipment may
be exchanged or upgraded
under a Technology Refresh
solution.
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iLease
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