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What is Leasing ?

What is Leasing ?

Finance Lease is a financing method in which the ownership of an investment good chosen by a lessee remains with the leasing company, while the right to use is given to the lessee within a defined contract time and rentals.

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At the end of the leasing term, the ownership of the said good is transferred to the leasing company.

In operational leasing, the leasing company retains the ownership of the goods both throughout the leasing term and after its termination. The contract terminates when the equipment is returned to the operational leasing company at the end of the contract term. The leasing company doesn't own the equipment but creates benefit out of it.