Leasing Leasing is a financial arrangement in which one party (the lessor) agrees to provide an asset, such as equipment, machinery, vehicles, or real estate, to another party (the lessee) for a specified period in exchange for periodic payments or rent. Leasing allows businesses and individuals to access and use assets without having to purchase them outright, providing flexibility, affordability, and conservation of capital.
Leasing agreements may include options for equipment upgrades, maintenance, insurance, and lease-end buyout options, depending on the terms negotiated between the lessor and lessee. Leasing is commonly used for acquiring business equipment, office space, vehicles, and technology infrastructure, offering advantages such as tax benefits, off-balance sheet financing, and simplified asset management. |
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