Lessor Defined by the businessdictionary.com as the Owner or the title holder of the leased asset or property. The lessor is also the lender and secured party in case of capital leases and operating leases.
This is a definition of lessor, but it should not be assume that the equipment dealer in a transaction is in fact the lessor. In a Financial lease, the equipment dealer is the supplier. However, the Lessor is a separate finance company that is usually independent from the supplier. This is offered for clarification purposes only. It is often assumed that the Equipment dealer is the owner of the equipment. This would be a false assumption that can lead to incorrect beliefs about the leverage the lessee may have over the lessor when equipment fails.