The 3 Types of Lessors

When it comes to lease agreements, the 3 types of lessors are: (1) banks (2) captive leasing companies (3) independents Many large banks have subsidiaries that structure leasing arrangements. Banks have an advantage in arranging leases because banks have access to low-cost funds from depositors. Captive leasing companies (often called "captives" for short) are subsidiaries of a manufacturer or a dealer. For example, Boeing has a subsidiary called Boeing Capital that arranges leases for customers who would like to lease aircraft from the parent company. The advantage captives have over banks is that a captive leasing company has access to the customer at the point of sale. If you're thinking of leasing an airplane from Boeing, for example, the Boeing salesperson can have someone from Boeing Capital arrange the lease for you. Captive leasing companies sometimes offer more favorable lease terms than a bank because they are trying to help the parent company sells its products or services. There are also independent leasing companies that focus entirely on making lease arrangements, but these companies have a declining market share. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com