Finance lease is a term used in many forms. As most frequently used, a net lease, which has as its purpose in the financing of the use of the property for a major portion of the property’s useful life. The term is typically used in reference to leases written by third-party lessors. The term is often confusingly used to refer to a conditional sale in the form of a lease transaction. Finally, the term is a specified lease classification type under ASC 842
