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Financial Lease

To manage the necessary asset for long-term by lease without costing cash is called Financial Lease or Capital lease.

According to Block and Hirt,” A long term non cancelable lease. The financial lease has all the characteristies of long term debt.”

According to J.M. Pandey,” Financial leases are long term non-cancellable leases, where any risk in the use of the asset is borne by the lessee and he enjoys the returns too.”

According to J.Rodriguez,” Financial lease is a lease with a term that opproximately equales the useful life of the asset, usually calling for a series of non cancellable lease payments over its life.”

 

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