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Direct Financing Lease
A type of lease where the lessor purchases the leased asset specifically for leasing to the lessee, effectively providing finance to the lessee for the asset's purchase.
Collectibility
The likelihood or ability of a business to collect on its accounts receivable, reflecting the financial health and creditworthiness of its customers.
Minimum Lease Payments
The least amount of payments over the leasing period, including any residual value, guaranteed by the lessee under a lease agreement.
Unearned Interest
Interest that has been collected on a loan by a lender but not yet earned, usually because the loan has not reached its maturity.
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