Lease
12.07.2013 09:23

Lease

1) A legal agreement/contract between two persons/firms, one to rent out, the other to hire assets/land/property, etc. In transport leasing is a common form of acquiring vehicles/plant (even office equipment -computers, etc).

Lessee pays lessor regular amounts to cover capital cost of asset plus interest and admin costs, etc but never (normally, with pure lease) owns asset. Has advantage to lessee of providing assets without capital involvement - payment is made out of revenue. Forms of lease vary (ie balloon lease/open-ended lease).

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.139-140 (288 p.)


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