Tuesday, June 27, 2017

What is Difference between financial leasing & operating leasing ?



Answer:

Financial Leasing

Ø  Lessor transfer all kinds of risks & rewards incident to the lessee

Ø  Lease is not cancelable prior to the expiry date.

Ø  Title may or may not be eventually transferred.

 

Operating Leasing

Ø  Lessor provides maintenance, repair & technical advice

Ø   Lease is cancelable prior to the expiry date.

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