or rental with buy-out option
The company rents the equipment
for the term of the contract, and has the option to buy the equipment
at the term of the contract for a pre-determined price.
The equipment can also simply
be rented with no buy-out option. A third party is often involved
in these contracts, who then buys out the equipment for a pre-determined
This is geared towards financing
the production equipment of industrial companies. The company
can, at the end of the contract, buy the equipment at market price,
renew the contract, or return the equipment.
The contract will allow for upgrading
of the asset so as to take advantage of the latest technological
This type of contract allows for
the immediate use of the equipment which will be paid for at an
Indexed rent leasing, leaned leasing,
lease-back, long term rental ...