Leasing is a complex that combines elements of a bank loan, rent, investment. A lease is a long-term financial agreement between a landlord and a tenant. Under a lease agreement, the lessor is obliged to acquire the lessee's property from the seller on the basis of ownership and transfer it to the lessee for temporary possession and use. Leasing is a form of private business activity for the use of industrial equipment, vehicles, buildings and structures. Leasing is currently the main source of funding for the development of voluntary production. Leasing has a number of advantages, for example:
There is no need for collateral, since the subject of leasing remains in the ownership of the leasing company during the lease term;
Leasing payments are exempt from VAT;
Leasing is the main alternative to acquiring fixed assets;
During the leasing operation, all procedural operations are carried out by the leasing company;
The lease period is usually longer.