A finance lease or capital lease is a variety of lease. It is a commercial arrangement in which: the lessee (customer or borrower) will pick an asset (equipment, car, software); the lessor (finance company) will purchase that resource; the lessee will have use of that asset over the lease. Finance lease is one through which risk and rewards incidental towards the ownership of this leased asset are used in lessee but not the ownership.
Finance Lease
