What is Equipment Leasing and How Does it Work?
Equipment leasing is a financial arrangement where one party, the lessor, owns and provides the use of equipment to another party, the lessee, in exchange for periodic payments. Instead of purchasing the equipment outright, the lessee pays a fee to use the equipment for a specified period, typically a fixed term. At the end of the lease term, the lessee may have the option to purchase the equipment, renew the lease, or return the equipment.
Equipment leasing empowers businesses to grow by preserving capital, providing access to advanced equipment, offering flexibility and scalability, mitigating risks, and delivering potential tax benefits.