BANKING AFFAIRS

Detailed explanation-1: -The type of lease that includes a third party, a lender, is called a(n): sale and leaseback.

Detailed explanation-2: -A leveraged lease is a lease agreement that is financed through the lessor with help from a third-party financial institution.

Detailed explanation-3: -The leveraged lease is a type of capital lease that involves three parties: a lessor. read more, a lessee. read more, and a lender. The lessor acquires the asset through partial equity funding, and the remaining balance from the debt is financed by the lending institution on a non-recourse basis.

Detailed explanation-4: -Leveraged and non-leveraged leases In leveraged and non-leveraged leases, the value of the asset leased may be of a huge amount which may not be possible for the lessor to finance. So, the lessor involves one more financier who will have charge over the leased asset.

Detailed explanation-5: -A leveraged lease is a tax-advantaged lease arrangement in which a lessor borrows funds to acquire an asset that is then leased to a lessee. In this situation, the lender holds title to the leased asset, while all lessee payments are collected by the lessor and passed to the lender.