Financial Leasing

Financial leasing is a contractual arrangement where one party (the lessee) pays to use an asset, like equipment or vehicles, owned by another party (the lessor) over a fixed period. The lessee typically makes regular payments, which often cover the asset's depreciation and interest. At the end of the lease term, the lessee may have the option to purchase the asset for a predetermined price. This arrangement allows businesses to access expensive equipment without the need for large upfront investments, improving cash flow and financial flexibility while still benefiting from the asset’s use.