Abiblo Finance - Capital Lease
Capital lease is a lease which does not constitute legally a purchase although the asset being leased shall be recorded as asset on the lesses' books if any of the criteria is meet such as the ownership of the property being transferred by the lease to the lessee at the end of the term of the lease, the existence of the bargain purchase option in which there is an option enabling the lessee to buy the leased property at the end of the lease for a minimal amount or renewing the lease for nominal rental known as bargain renewal option, the term of the lease is 75% or more of the life of the property and the present value of the minimum lease payment is or more than 90% of the fair value of the property.
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May 2020
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