Knowledge Hub
Browse all glossary terms grouped by topic.
Equipment Leasing
10 terms-
Capex vs. Opex
Capital Expenditure (buying) vs. Operational Expenditure (leasing/running costs).
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End of Term Options
The choices available to a lessee when a lease agreement concludes.
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Fair Market Value
The price that an asset would sell for on the open market.
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Finance Lease
A type of lease in which the finance company is typically the legal owner of the asset for the duration of the lease.
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Lease Commencement Date
The date on which the lessee begins to have the right to use the underlying asset.
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Master Lease Agreement
An overarching contract that controls the terms for multiple individual lease schedules.
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Operating Lease
A contract that allows for the use of an asset but does not convey ownership rights of the asset.
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Payment Frequency
The intervals at which lease payments are made, such as monthly, quarterly, or annually.
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Residual Value
The estimated value of a fixed asset at the end of its lease term.
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Soft Costs
Non-tangible costs associated with an equipment acquisition, such as installation, training, and maintenance.