A financial leasing contract indicates a commercial arrangement where the lessee (customer) selects an asset and lessor will purchase the asset, which asset the lessee utilizes in exchange for a series of installments paid to the lessor for a specific amount of time. Once the lessee fulfils all the contractual obligations, acquires full ownership of the asset.
The Financial Lease includes three main stakeholders:
- Lessor - Leasing Company
- Lessee - Customer/The user of the asset
- Vendor of the leased asset - asset seller
Advantages of leasing:
- Financing without additional mortgage
- Quick approval procedures
- Competitive interest in the market
- Automatic transfer of ownership right after the payment of the final installment