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Elements of Leasing

Elements of Leasing

Leasing is one of the important and popular parts of asset based finance. It consists of the following essential elements. One should understand these elements before they are going to study on leasing.

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1. Parties:

These are essentially two parties to a contract of lease financing, namely the owner and user of the assets.

2. Leaser:

Leaser is the owner of the assets that are being leased. Leasers may be individual partnership, joint stock companies, corporation or financial institutions.

3. Lease:
Lease is the receiver of the service of the assets under a lease contract. Lease assets may be firms or companies.

4. Lease broker:

Lease broker is an agent in between the leaser (owner) and lessee. He acts as an intermediary in arranging the lease deals. Merchant banking divisions of foreign banks, subsidiaries indian banking and private foreign banks are acting as lease brokers.

5. Lease assets:

The lease assets may be plant, machinery, equipments, land, automobile, factory, building etc.

Elements of Leasing Elements of Leasing Reviewed by Blog Editor on Wednesday, August 30, 2017 Rating: 5

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