Capital leasing (finance leasing)
 Hire Purchase
 Leasing
 Leasing contract
 Leasing object
 Leasing rate
 Leaseback
 Lessee (beneficiary)
 Lessor (financier)
 Object risk
 Operating leasing
 Purchase (end value)
 Residual Values
 Service charge
 Tenor of the contract
 Zero-interest leasing

A leasing structure in which the object is on lessee’s responsibility and simultaneously remains in the ownership of the lessor. The accounting and fiscal depreciation of the contractual object is carried out by the lessor and the lessee can render the leasing instalment fully deductible in tax (interest and capital share plus VAT – some exceptions for cars and some specific structure).
The leasing object is handed over to the customer for a usage period which is similar to the period of its operational soundness. After the contractual term the lessee can either acquire the leasing object for a predetermined price or return it to the lessor.
Cost value of the leasing object including eventually associated extra costs (transport, transport insurance, customs duty, import tax), which are booked by the leasing company and included for the calculation of the leasing rate.
For IAS rules, under a finance lease the rental covers virtually all of the costs of the asset, therefore the value of the rental is equal to or greater than 90% of the cost of the asset. The leasing company claims written down allowances, whilst the customer can claim both tax relief and VAT on rentals paid.

Hire Purchase (HP) is an Anglo-Saxon definition and well-established method of financing the purchase of assets by businesses. Under a HP agreement the customer will pay an initial deposit, with the remainder of the balance and interest paid over a period of time. The finance company which provides finance is known as the "creditor". It will purchase the asset on behalf of the customer, who is known as the "hirer" The finance company owns the asset until the final installment is paid for the asset.

Leasing is a contract between the leasing company, the "lessor", and the customer, the "lessee";

–	The leasing company buys and owns the asset that the lessee requires
–	The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset

There are two types of leases : Finance Leases and Operating Leases.
Leasing is an advantageous, alternative and tax deductible financing form of economic activity in comparison with credits and loans. Lessee can utilize economic goods (e.g. machines, real estate, vehicles) without the necessity of buying them and as such spending a substantial amount of money at once.
The leasing object is property of the leasing company until the date on which the repayment of all leasing instalments established for this contract has been made by the lessee. After the leasing contract expires the lessee can buy the leasing object or included it in his assets depending upon the leasing form. Independent of the leasing form the contractual end is always connected with signing an end contract about the transfer of ownership or the purchase of the leasing object between the lessee and the lessor.

A contract on the basis of which the right of use of an object is transferred to the lessee for agreed payment for a specified period and under certain conditions. Finance lease contract are mostly standardised, reflecting the Italian law and consolidated jurisprudence.

An economic good (mobile good or real estate), license, or immaterial or legal values, by which the right of use is transferred from the lessor to the lessee owing to a leasing contract.

A charge mentioned in a leasing contract, which is paid by the lessee to the lessor for using the leasing object. It can take the form of equal, digressive, increasing rental, as well as the form of an periodical determined instalment rental stream which for instance accounts for a seasonal nature of the lessee’s activity.

A form of leasing by which the remaining economic good from the previous ownership of the lesser is sold to the lessor and then it is leased by the latter for a predetermined charge. Through such a leasing form the customer gets the mutual fund back, which he had invested when buying the economic good, and at the same time he uses the object that in the meantime has become property of the leasing company.

A customer of a leasing company (economic subject), who takes custody of the contractual object of the leasing company based on the entitlement of a leasing contract.

Economic subject carries out the procurement of the object selected by the customer (lessee) and “leases” it through a leasing contract under the agreed conditions.

The lessee bears a big share of the investment risk on the object. The selection of a suitable leasing object and a correct supplier as well as keeping and servicing the leased object also lie under his responsibility. The investment risk such as the market value risk is transferred to the lessor.

The lease will not run for the full life of the asset and the lessee will not be liable for its full value. Based on Bank of Italy rules for leasing companies acting in the financial lease market, the original manufacturer or supplier or a third party will assume the residual risk. This type of lease will normally only be used when the asset has a probable resale value. Essentially this gains the customer the use of the asset together with added services. A leasing structure where the contractual object is included in the asset of the lessor. The lessor depreciates the object and the lessee can fully deduct the lease rentals from income tax return. At the end of the contract the lessor is given back his leasing object. made. The contractual term if free but generally between 12 and 36 months.

A predefined contractual sum for which the leasing company is obliged to sell the contractual object to the lessee. This value is mostly lower than the market value.

A residual value is the value of the asset at the end of the lease term. Residual values play an important role in an operating lease that is used in conjunction with equipment that retains value at the end of the contract period. The residual value will be left out of the rental calculation. Either the leasing company or a third party will take the risk that the asset will not be worth the amount of the residual value at the end of the lease.

An amount covering the administrative costs of the leasing contract as risk evaluation, contract preparation, payments fees.

The tenor the leasing contracts during which the contract must be continued. For finance lease, in order to grant tax deduction of the rentals, the minimum tenor has to be equal or longer than 50% of the normative depreciation time based on depreciation rates of mobile economic goods depending upon the character of the leasing object with reference to the applicable tax provisions. For operating lease there is no a minimum tenor but generally it range between 12 and 36 months.

A form of leasing whereby the sum of all leasing rates is equal to the price of the leasing object. In practice this means that after all the leasing rates have been paid by the lessee, the latter bears the same costs as he would if he made a lump-sum cash payment for the object. Owing to the discounts negotiated with the manufacturer, the leasing companies offer “zero leasing“.