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This chapter deals with some of the important special finance such as leasing, venture
capital, foreign direct investment etc. and also this chapter covers the advantages and
disadvantages, application in the present position and institution, which are providing.
These finance to the business concern. This part is divided into the following major parts
such as:
1. Lease Financing
2. Venture Capital
3. Factoring
4. Foreign Direct Investment
5. Merchant Banking
6. Credit Rating
7. Mutual Funds
LEASE FINANCING
Lease financing is one of the popular and common methods of assets based finance, which
is the alternative to the loan finance. Lease is a contract. A contract under which one
party, the leaser (owner) of an asset agrees to grant the use of that asset to another leaser,
in exchange for periodic rental payments.
Lease is contractual agreement between the owner of the assets and user of the assets
for a specific period by a periodical rent.
Definition of Leasing
Lease may be defined as a contractual arrangement in which a party owning an asset provides
the asset for use to another, the right to use the assets to the user over a certain period of
time, for consideration in form of periodic payment, with or without a further payment.