What Is a Closed-End Lease?

Restitute Rental refers to the lease form in which the lessee sells his equipment to the lessor and then leases the equipment back to use.

Leaseback

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Restitute Rental means that the lessee sells his equipment to

The characteristic is that the lessee and the supplier of the leased item are one. The leased item is not purchased, but the equipment that the lessee has purchased and is using before the lease contract is signed. The lessee sells the equipment to the leasing company, and then leases it back as a leased item. The tenant still has the right to use the item but has no ownership. The purchase and sale of equipment is a formal transaction, and the leased enterprise needs to convert the fixed assets into financing leased fixed assets. Refundable leasing emphasizes the lease financing function and loses the lease promotion function, similar to the "pawn" business. It is a financial activity for an enterprise to expand its sources of liquidity without affecting production.