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Types of Leasing

Type of Leasing

Leasing, as a financing concept, is an arrangement between two parties for a specified period. Leasing may be classified into different types according to the nature of the agreement. The following are the major types of leasing as follows:

(A) Lease based on the term of lease

1. Finance Lease

2. Operating Lease

(B) Lease based on the method of lease

1. Sale and lease back

2. Direct lease

[Post Image Courtesy of Kanate at FreeDigitalPhotos.net]

(C) Lease based in the parties involved

1. Single investor lease

2. Leveraged lease

(D) Lease based in the area

1. Domestic lease

2. International lease

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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