Incremental Borrowing Rate Definition | Becker

Accounting Dictionary

Incremental Borrowing Rate

The lessee's incremental borrowing rate is the rate of interest that a lessee would have to pay at the inception of the lease to borrow the funds, on similar terms, to purchase the leased property. See also interest rate implicit in the lease.

Related Terms:

Interest Rate Implicit in the Lease [FARBAR]Back to Dictionary

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