LEVERAGED LEASE
A three-party lease agreement that is partially financed by the lessor via a third-party financial institution. In other words, the lessor will borrow funds to finance the asset to be leased. The lending company has the title to the leased asset and the lessor drafts the agreement with the lessee. Then, the lessee gives payments to the lessor, and the lessor gives the payments to the lender.
In this contract, when the lender provides the financing, it is without the recourse to the lessor. In the event of a default, the lender may repossess the leased asset. Leveraged lease is a true or tax-oriented leases because the lessor enjoys all the tax benefits of depreciation, and the lessee may claim the full amount of the payment as expenses.
POPULAR TERMS
Highly Leveraged Transaction - HLT
HLT is a loan provided from a financial institution to a company that has a large debt amount already. The existing large amount of debt only means ...
Form 5
A document that must be filed with the Securities and Exchange Commission (SEC) by an insider who has conducted insider transactions during the yea ...
Countersignature
Additional signature from an official or professional on a document that has already been signed. Serving as confirmation or authentication, it is ...
Average Collection Period
The amount of time for a business to receive payments owed.
Primary Regulator
The state or federal agency with main supervisory responsibility for a financial institution. Banks and other financial institutions will have to f ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Buying a Home: Getting Into the Escrow Process
You write an offer and the seller accepts it. Deal closed. It is about time to go through the escrow process. Why does a buyer need to undergo this ...
How Much Does a Home Remodeling Cost?
If your house can handle a renovation, the next thing you need to find out is the cost of a home remodeling.
You may nee ...
Student Loans: Repayment in Times of Financial Difficulty
One day, you are in the middle of a financial hardship. Unfortunately, you still have student loans to pay. What will you do? In times like these, ...
Digesting Financial Statements: Earnings
For assessing how a company performed in a given period, the relation between income and cash flow statements should be taken into account. Several ...
Inflation and Investments
“How does inflation affect my investments?”
Most investors ask this question, particul ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 11:00 | Ifo Business Climate Index | Jan | |
| 11:00 | Ifo Current Assessment | Jan | |
| 11:00 | IFO - Expectations | Jan | |
| 15:30 | Durable Goods Orders | Nov | |
| 16:00 | NBB Business Climate | Jan | |
| 01:50 | Corporate Service Price Index | Dec | |
| 02:01 | BRC Shop Price Index | Jan | |
| 02:30 | NAB Business Confidence | Dec | |
| 04:00 | Credit Card Spending | Dec |
