finance lease vs financial lease

Both 'finance lease' and 'financial lease' are correct terminologies used in the field of leasing. They are interchangeable and refer to a type of lease where the lessee is responsible for maintenance, insurance, and other expenses associated with the leased asset. There is no significant difference in meaning between the two phrases.

Last updated: March 27, 2024 • 813 views

This phrase is correct and commonly used in the field of leasing.

"finance lease"

The term 'finance lease' refers to a type of lease where the lessee is responsible for maintenance, insurance, and other expenses associated with the leased asset.

Show examples from the web [+]

Under IFRS or compatible National GAAP, 'finance lease receivables' are as defined in IAS 17.
The present finance lease meets this requirement.
On 21 September 2005 the Commission signed a 27 year finance lease contract for a building in Brussels valued to EUR 50 million.
The result had been that the total finance lease liability had been understated at 31 December 2002 by EUR 188.6 million.
The cost of an item of property, plant and equipment held by a lessee under a finance lease is determined in accordance with IAS 17.
For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease.
An operating lease is a lease other than a finance lease.
In the case of a finance lease, the underlying asset may be either tangible or intangible.
After initial recognition, a lessee accounts for an intangible asset held under a finance lease in accordance with this standard.
The finance lease was provided by a private US bank [...] to finance the acquisition of five B787 aircraft.
In view of the above, the finance lease can be considered as a sign that markets believed in LOT's return to viability.
The finance lease alone accounts for [60-67] % of total restructuring cost and thus would be sufficient to meet the required threshold.
For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease.
property that is leased to another entity under a finance lease.
cash payments by a lessee for the reduction of the outstanding liability relating to a finance lease.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset.
The costs identified as directly attributable to activities performed by the lessee for a finance lease are added to the amount recognised as an asset.
A finance lease gives rise to depreciation expense for depreciable assets as well as finance expense for each accounting period.
Lessors shall recognise assets held under a finance lease in their balance sheets and present them as a receivable at an amount equal to the net investment in the lease.
If a sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount shall not be immediately recognised as income by a seller-lessee.

Alternatives:

financial lease
capital lease
full payout lease
non-cancelable lease
true lease

This phrase is correct and commonly used in the field of leasing.

"financial lease"

The term 'financial lease' refers to a type of lease where the lessee is responsible for maintenance, insurance, and other expenses associated with the leased asset.

Show examples from the web [+]

A financial lease is an alternative to lending as a method of financing the purchase of machinery and equipment.
Assets acquired under a financial lease are recorded as if the user becomes the owner when he takes possession of the goods.
During 2003 has the Parliament bought the Konrad Adenauer building which has been held under a financial lease since 1986.
The lease company will provide the aircraft supplied to ČSA to be used under a financial lease for a period of 10 years;
A financial lease therefore functions as a loan by the lessor to enable the lessee to purchase a given asset.
On March 2003 the Council signed a contract for the construction and acquisition of the LEX building in Brussels through a financial lease.
The guaranteed bank credit in the amount of EUR 20,8 million was abandoned because ČSA was able to secure a financial lease provided by [...].
new or existing fixed assets acquired by the user under a financial lease;
Under a financial lease the lessee acquires the right to use a durable good in exchange for rental payments over a predetermined and protracted term.
The main financial expense incurred by the European Communities consists of interest; primarily on financial lease contracts and on borrowings taken out to fund lending activities.
In October 2004 the Parliament signed a financial lease with a purchase option for a building complex in Brussels and the construction began during 2004.
Expenditure on a good acquired under a hire purchase or similar credit agreement (and also under a financial lease) should be recorded at the time the good is delivered even if there is no legal change of ownership at this point.
The Participants may, subject to the other terms of Part 1 of the Sector Understanding, provide support for a financial lease on the same basis as a contract of sale.
Another company, Beaver 84 Ltd, of Basildon was not even told by its intermediary that its application for a financial lease was even on the list for a European subsidy.
The main financial expense incurred by the European Communities consists of interest on financial lease contracts, as well as on borrowings taken out to fund lending activities and derivative instruments.
Exceptions to the change of ownership rule (transactions in these items are recorded in goods) include: goods on financial lease, goods transferred between a parent enterprise and a branch, and some goods for processing.
The value of goods acquired via financial lease corresponds to the market value of the good if it had been purchased in the year of acquisition only.
Are costs related to the acquisition of assets - other than land and buildings - under financial lease included in the eligible expenditure?
Furthermore, the Czech Republic confirmed that the notified State aid in the form of a guarantee would not be needed as ČSA was able to obtain private financing of the aircraft which was procured in the form of a financial lease that was provided by [...].
goods transferred under a financial lease: the goods should be valued on the basis of the purchasers' price paid by the lessor (not by the cumulative value of the rental payments);

Alternatives:

finance lease
capital lease
full payout lease
non-cancelable lease
true lease

How TextRanch works

Fast and reliable proofreading, editing, and language advice tailored to your needs.

1. Choose Your Service

Quick Text Editing

Emails and short texts
Proofreading & editing
Ready in 5-10 minutes

SUBMIT YOUR TEXT NOW

Document Editing

Documents of any type (*.docx)
Advanced & Premium editing
Ready in as little as 4 hours

UPLOAD YOUR DOCUMENT

Ask an Editor

Personalized answers to your language questions
Expert guidance on grammar, style, and usage
Ready in 24 hours

ASK YOUR QUESTION

Upload your document or paste your text directly into our platform. Your text is reviewed and refined by our expert editors (real people, not machines) who understand the nuances of English. Expect corrections, improvements, and insightful suggestions that enhance the clarity, tone, and professionalism of your writing.

3. Receive Your Polished Text

In just a few minutes (or hours for longer documents), you'll receive your corrected text. Review the changes, make any final adjustments, and confidently share your polished English with the world.
You can count on a personalized, friendly service every time you use TextRanch. We're committed to helping you make a great impression with every word you write.

We proofread and edit these types of texts and documents:

Short texts Business Emails Personal Emails Social media posts Resume and Curriculum Vitae Business documents Sales proposal Research and academic papers Thesis Dissertation Essays Articles Blog posts and much more....

Our Customers Love Us!

We have an average rating of 4.79 stars based on 283125 votes, and

4.9 Excellent - Reviews 2.137

"7 years without any disappointment. Always 100% satisfied. You guys are the best in the world at what you do. Thank you so much :)"

Zubair
from Bangladesh

"I wasn't aware of this service, it's fascinating and more reliable than standard IA tools available on the internet"

Arturo
from Mexico

"In a world of text messages and online communication, this is great to have as a live tool. Thank you."

Selena
from USA

"Wow, it's just so excellent. I never would have believed I could have a sure and excellent English companion. Thanks, TextRanch."

Ifiok
from Nigeria

"This is my first time using TextRanch, and I like how the editors take time to correct my text. To everyone who has never used TextRanch before, I highly recommend trying it."

Wilson
from France

"It is an amazing source of feedback because, as a non-native speaker, I really need to have a reliable helper correct my text."

Susan
from Germany

finance lease vs financial lease

"finance lease"

"financial lease"

Related Comparisons

2. Submit Your Text

3. Receive Your Polished Text