Finance Lease Termination
A finance lease, also known as a capital lease, is a long-term lease agreement that transfers substantially all the risks and rewards of ownership of an asset from the lessor (the company owning the asset) to the lessee (the company using the asset). Terminating a finance lease before its scheduled end date can be complex and often involves significant costs. Understanding the potential termination scenarios and their implications is crucial for both lessors and lessees.