Finance Lease

A finance lease is a contractual agreement where a customer (lessee) gains the right to use an asset, such as equipment or a vehicle, for most of its useful life, by paying regular installments to the owner (lessor). Unlike renting, a finance lease usually involves conditions where the lessee is responsible for maintenance and other costs, and at the lease's end, they often have the option to buy the asset. It effectively functions as a long-term financing option, allowing businesses or individuals to access expensive assets without full upfront payment.