In a finance lease, all the risks and rewards associated with the use and ownership of the property are transferred to the lessee. This is a lease that conveys all the risks and rewards associated with owning an asset. In addition, the risks include equipment failure, the use of outdated technologies, changes in market conditions, etc. Income is generated during the economic life of the asset as well as from the increase in value of the asset.

A finance lease is an arrangement that allows a company to use an asset for a period of time. A percentage of the cost of the asset is paid over the course of the lease, and when the lease ends, ownership is transferred to the company who leased it. It's also called a rented-purchase agreement and it's typically used in industries like transportation or manufacturing where assets like cars or machinery need to be replaced on a regular basis.

A finance lease is a type of lease that allows the lessee to pay for the leased asset by making periodic payments, typically monthly. This is different from a traditional lease because the lessee does not own the leased asset at the end of the agreement period.