/ Lease Glossary
Glossary of Lease Terms
Lease A contract conveying use of an asset for a specified period at a specified rate.
FMV Purchase Option an option to purchase the asset at the Fair Market Value at the end of the lease term.
Base Term the original term of the lease.
Commencement date the lease starts.
Residual Value expected market value at the end of the lease.
Lease Factor lease payment divided by sales price.
Lessee the user of the leased equipment.
Lessor the owner of the equipment being leased.
Net-Lease Lessee is responsible for maintenance, taxes and etc.
Residual todays estimate of what the equipment will be worth after the term of the lease.
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