Discount rate financial leases have the same characteristics of secured debt finance the security is the leased asset; the lessor is the provider of the finance Lease contract is considered to be the same as debt -impacts on the debt capacity and gearing ratio of the firm a Compare lease finance to debt financeDiscount Rate ◼ Financial leases have the same characteristics of secured debt finance: ◼ the security is the leased asset; ◼ the lessor is the provider of the finance. ◼ Lease contract is considered to be the same as debt - impacts on the debt capacity and gearing ratio of the firm. ◼ Compare lease finance to debt finance