Direct Financing Lease

Under U.S. GAAP, from the standpoint of the lessor, finance leases are divided into direct financing leases and sales-type leases. A direct financing lease is a lease that meets one of the five finance lease criteria and two other criteria and where there is no manufacturers' or dealers' profit. See also sales?type lease and finance lease (U.S. GAAP) and finance lease criteria and operating lease.