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Most fast-growth companies are started by
Lease Agreement
A contract in which one party, the lessor, allows another party, the lessee, to use an asset for a specified period of time in exchange for payments.
Finance Lease Agreement
A lease in which the lessee has control over the asset being leased and substantially all risks and rewards incidental to ownership, even though legal title may not be transferred.
Residual Value
The estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
Implicit Interest Rate
An interest rate inferred from the cost of borrowing, or the return on investment, that is not explicitly stated.
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