What is typically included in a financing lease?

A financing lease is characterized primarily by the transfer of ownership risk and benefits associated with the asset during its lease term, typically without an outright transfer of ownership to the lessee until certain conditions are met. In a financing lease, the lessor retains ownership and the associated performance risks of the leased asset, which allows the lessor to provide financing for the asset while the lessee gets to use it without acquiring full ownership until the end of the term or certain qualifying events occur.

This nature shapes the structure of the lease agreements, where the lessor's responsibility for the asset includes aspects like maintenance and potential asset depreciation impacts.

In contrast, the idea of an emergency exit strategy for defaults does not usually fall into the standard terms of a financing lease. Rather, it may be seen in other types of agreements or insurance policies. Full ownership transfer at the end would not align with a financing lease where ownership rights often remain with the lessor. Similarly, indemnity clauses against damages could be present but are not a defining feature of financing leases, which primarily focus on ownership and risk retention.