Comments on: Introduction to Lease Financing/Leasing https://bbamantra.com/lease-financing-leasing/ Notes for Management Students Fri, 02 Sep 2016 16:23:35 +0000 hourly 1 https://wordpress.org/?v=6.5.4 By: bbamantra https://bbamantra.com/lease-financing-leasing/#comment-738 Fri, 02 Sep 2016 16:23:35 +0000 https://bbamantra.com/?p=2107#comment-738 In reply to Satyanarayana.

Feel free to ask more questions. I hope your satisfied with the answer.

]]> By: bbamantra https://bbamantra.com/lease-financing-leasing/#comment-737 Fri, 02 Sep 2016 16:22:09 +0000 https://bbamantra.com/?p=2107#comment-737 In reply to Satyanarayana.

If the leased asset is purchased through borrowed funds it is called a leverage lease. In such a lease the asset is financed partly by the lessor and partly by a financial institution. Generally assets with require very huge amount of capital as financed through this lease. Eg. Big Real Estate projects
The lessor may or may not charge a higher interest rate from lessee than what he is charged by the lender (bank).
The lessor usually provided 20%-40% cost of the asset therefore immediate cash outflow cannot be avoided but it helps reducing the financial burden.

]]> By: Satyanarayana https://bbamantra.com/lease-financing-leasing/#comment-733 Fri, 02 Sep 2016 12:43:03 +0000 https://bbamantra.com/?p=2107#comment-733 Please conform about lease finance once again . as of my point of view if the leased asset is purchased out of borrowed funds (finance) then it may called lease finance , lessor get benifited for interest on loan and immediate cash outflows could be avoided ,

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