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What is leasing?
- Leasing is based on the leasing of things (automobiles, equipment, ...) at established installments. After a certain amount of time, the lessee may become the owner of the thing by paying the nominal residual fee. Thus, leasing allows business parties to invest completely or partially with outside sources without any direct impact on the amount of its own capital.
How does leasing work?
- Leasing operations always involve the participation of three subjects: the seller (or producer), the leasing company and the lessee. The standard leasing operation procedure is as follows:
- The seller and the leasing company conclude a purchase contract upon which the leased object becomes the property of the leasing company, which remains its owner for the lifetime of the agreement.
- The lessee and the leasing company (the lessor) conclude a leasing agreement which establishes the relationship during the leasing period and usually resolves the situation upon the termination of the leasing agreement (the purchase of the leased object).