Leasing

Leasing Concept

Leasing (or financial lease) consists on a funding operation though which one of the parts (the lesser) gives to the other (the lessee) the right of use of a certain good, during an agreed period of time, in return of periodic rent payment. At the end of the contract, the lessee can purchase the good upon a residual value previously established. This residual value is agreed between the parts at the beginning of the contract, being paid and the end of this in case the lessee wishes to exert the purchase option. In practice, leasing is very similar to mortgages bank loan, being widely used for the purchase of equipments and facilities.