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lease

Open-ended lease

1) Lease for hire of goods (usually vehicles) where date of termination is not specified leaving facility to negotiate when required. Normally pre-established termination charges are incorporated in lease document so lessee can determine most economical time to terminate depending on use of asset/market value, etc.

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Amortization lease

1) A form of financial lease where the full cost of the asset and interest is covered (ie amortized) in the lease payments leaving no residual value to be recovered.

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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).

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Balloon lease

1) Form of financial lease whereby a large payment is made either at the beginning or the end of the lease period, usually with the intention of reducing the interim monthly or quarterly repayments.

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