Mastering Financial Mathematics in Microsoft Excel, 3rd Edition

15

Leasing

Economics of leasing

Interest rates

Classification

Amortisation

Accounting

Settlements

Lessor evaluation

Lessee evaluation

Exercise

Summary

 

File: MFMaths3e_15.xls

ECONOMICS OF LEASING

Leasing can be compared with loans except that the sole security is usually the equipment rather than a fixed charge or other security. The financing method has a long history of at least 3,000 years, since the essential benefit allows the borrower the use of assets while paying for them principally to aid cash flow. In the nineteenth century, UK rolling stock leasing companies took advantage of the new joint stock companies legislation in the 1850s to lease wagons to the new rail operating companies, while leasing helped similar companies in the United ...