Structuring of Lease Rentals
Lease rentals are structured to suit the lessor and the lessee. From the lessee angle, the structure of the lease rental should synchronize his operational cash flow pattern. The dimension of the synchronization between the lease rental and the pattern of cash flows of the lessee are periodicity of rentals, lease rentals in advance arrears, profile of rentals and so on. Lease rentals should ensure a given expected return to the lessor. The structuring of an appropriate lease rental both for pretax as well as post tax rates of return.
Cost of Capital and Profit Components of lease Rentals