What is a lease?
What steps would you follow to decide whether to lease or buy a computer system?© BrainMass Inc. brainmass.com June 19, 2018, 11:38 pm ad1c9bdddf
In simple terms, a lease is a contractual arrangement between the lessee (the customer) and the lessor (the funding source). The lessor purchases the equipment from your supplier of choice and leases it to the lessee for a fixed, regular payment. Generally, there are two different types of leases: a true lease and a finance lease.
Lease rates depend upon a variety of factors including:
? Type of business
? Number of years in business
? Business credit history
? Fair market value or $1.00 buyout
? Type, brand, and age of the equipment
Whether you lease your equipment, pay cash for it, or obtain a bank loan, sales or property taxes are charged according to the state and local authorities where your equipment is ...
This solution provides a definition of a lease and discusses the steps necessary in the lease vs. buy decison.