Which term refers to the financing by a funder in one country for a lessee in another country?

Which term refers to the financing by a funder in one country for a lessee in another country?

• A. Bundled Lease
• B. Service Lease
• C. Cross Border Financing
• D. Wet Lease

Answer: (C)

Cross-border financing describes a funding arrangement where a lender in one country provides the money for a lease to a lessee in another country. This setup covers international financing relationships, often involving currency considerations, regulatory differences, and tax implications between jurisdictions. Bundled leases combine equipment with services bundled together, but the key idea here is the cross-border aspect of who provides the funding. A service lease emphasizes the provider's ongoing services rather than the financing source. A wet lease is typically used in aviation, where the lessor supplies aircraft along with crew, maintenance, and insurance. So the term that best captures financing by a funder in one country for a lessee in another is cross-border financing.

Cross-border financing describes a funding arrangement where a lender in one country provides the money for a lease to a lessee in another country. This setup covers international financing relationships, often involving currency considerations, regulatory differences, and tax implications between jurisdictions. Bundled leases combine equipment with services bundled together, but the key idea here is the cross-border aspect of who provides the funding. A service lease emphasizes the provider's ongoing services rather than the financing source. A wet lease is typically used in aviation, where the lessor supplies aircraft along with crew, maintenance, and insurance. So the term that best captures financing by a funder in one country for a lessee in another is cross-border financing.