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Leasing is similar to a rental contract, where you only use the equipment for the duration of the lease. Financing involves taking out a loan — in this case, secured by the equipment — and ...
Under an operating lease, the lessee records rent expense over the lease term, and a credit to either cash or rent payable. If an operating lease has scheduled changes in rent, normally the rent must be expensed on a straight-line basis over its life, with a deferred liability or asset reported on the balance sheet for the difference between ...
Equipment loans often have a higher payment than an equipment lease but allow you to own the asset outright at the end of the loan term. For many business owners, buying equipment is an important ...
You can simply end your lease. Equipment loans are a better option if you want to own the equipment and you have the money for the down payment on the equipment. And if you need to free up working ...
The term "net lease" is distinguished from the term "gross lease". In a net lease, the property owner receives the rent "net" after the expenses that are to be passed through to tenants are paid. In a gross lease, the tenant pays a gross amount of rent, which the landlord can use to pay expenses or in any other way as the landlord sees fit.
The narrower term 'tenancy' describes a lease in which the tangible property is land (including at any vertical section such as airspace, storey of building or mine).A premium is an amount paid by the tenant for the lease to be granted or to secure the former tenant's lease, often in order to secure a low rent, in long leases termed a ground rent.