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What Is Finance lease?

What Is Financing lease?

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Financing lease is also called as full payout lease. It is one of the long-term leases and cannot be cancelable before the expiry of the agreement. It means a lease for terms that approach the economic life of the asset, the total payments over the term of the lease are greater than the leasers initial cost of the leased asset.

For example: Hiring a factory, or building for a long period. It includes all expenditures related to maintenance.

What Is Finance lease? What Is Finance lease? Reviewed by Blog Editor on Sunday, September 03, 2017 Rating: 5

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