Lease Financing is an alternative arrangement of medium- and long-term loan.In Lease financing, the owner of an asset gives another person, the right to use that asset against periodical payments. The owner of the asset is known as lessor and the user is called lessee.
According to James C. Van Horne,” A lease is a contract where by the owner of an asset grants to another party the exclusive right to use the asset, usually for an agreed period of time in return for the payment of rent.”
According to M.Y. Khan and P.K Jain,” A lease is a contractual arrangement under which the owner of an asset agrees to allow the use of his asset by another partly in consideration of periodic payments for a specific period.”
According to Burton A Kolb,” A lease is a means of obtaining the use of a fixed asset as an alternative to buying the asset and directly financing it. The lessor holds title to the asset and the lessee has the right to use it in accordance with the lease contract.”
According to Block and Hirt,” A lease is a contractual arrangement between the owner of equipment and the user of equipment which call for the lersee to pay the lersor an established leas payment.”
According to Lawrence & Gitman,” Leasing is the process by which a firm can obtain the use of certain fixed assets for which it must make a series of contractual, periodic, tam-deductible payments.”