Lessor

Accounting Terms Dictionary

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Lessor

A lessor is someone who grants a lease to a lessee.

Lessors can grant operating leases (traditional leases) direct-financing leases, or a sales-type lease which includes a profit for the dealer or manufacturer. Potential customers that may balk at buying a company’s product may very well agree to take it on a lease. Leases can increase a company’s profit.

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