Simply put, leasing is a type of lending, in which the owner of an object (vehicle, equipment) leases it for a long period to the lessee with the possibility for the latter to purchase it in the future or vice versa. The lessor acquires property for the lessee from the seller, and the lessee pays interest during the use of the property and has the right to purchase it outright.

Leasing is a financial arrangement where one party (the lessor) grants another party (the lessee) the right to use an asset, such as equipment, vehicles, or property, for a specified period in exchange for regular payments. Unlike purchasing, leasing does not involve ownership transfer; instead, it provides temporary access to the asset. There are two main types of leases: operating leases, which are short-term and often used for equipment, and finance leases, which are long-term and may include an option to buy the asset at the end of the term. Leasing offers flexibility, preserves cash flow, and allows businesses to access up-to-date assets without large upfront costs. However, the lessee does not build equity in the asset and may face restrictions on its use.