Capital lease: Difference between revisions
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== See also == | == See also == | ||
* [[Capital ]] | |||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[Operating lease]] | * [[Operating lease]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
Revision as of 14:06, 28 April 2022
A capital lease usually involves the lessee paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor.
The lessee effectively retains substantially all the risks and rewards of ownership.
But the lessee does not obtain legal title to the leased asset.
Also known as a finance lease.
