Discussion Groups / English Usage / March 2008

I am an English teacher in China. When I was preparing for a lecture
on stock investment, there is a passage taken from the Fortune
magazine stoped me there for more than 2 hours. There is no difficulty
for my to understand all the words and sentences literally, but I was
really confused by its real meaning.

The paragraph reads as follows:

A higher proportion of recurrent revenues helps fast-growing companies
stay on the track. A company that makes engagement rings, will have a
harder time growing than a company that makes razor blades. Leasing
Solutions, a small info-tech vendor lessor in San Joe, market their
financial services to the markets of equipment rather than to end
users, and then team up with the manufacture to finance purchases by
the customers. Since leases typically run for 3 years, a high
proportion of the company's revenues are locked in at the beginning of
every year. An underappreciated twist to the leasing business,
observes an analyst, is that the contract actually gets more
profitable as time goes on because of the way the lessor amortizes its
interest expense. Leases work like mortgages, so interest expense
declines over time.

Questions:
1. a high proportion of the company's revenues are locked in at the
beginning of every year. why?
2. so interest expense declines over time.
3. Pleas also help me by stating the process involved in the deal,
like "Leasing solution get a loan from the bank -> purchase equipment -

You help will be highly appreciated.