#Lease finance definition full

Besides the right of use, you can also buy additional services, such as maintenance, repairs, or insurance. With an operational lease, the lease company remains the legal and economic owner of the asset. You become the owner of this machine and repay the financing in instalments.

#Lease finance definition full

The leasing company finances the full purchase value (100% financing) of an asset, for example, a new machine. With a financial lease, you take out a loan, as it were. The best-known forms of leasing are financial lease, operational lease, and private lease. This way you keep operating capital in your company. Because you pay the value of the asset in instalments, you do not have to make a large investment in one go. Or you determine this at the end of the lease period.

Depending on the lease form, you become the owner of the asset directly. You pay a monthly amount (lease instalment) to the leasing company for the use of the business asset. The leasing company finances the asset and leases it to you for use or ownership. This is how leasing worksĭo you lease any business assets? Then you have an agreement with a leasing company. This means the leasing industry is a major source of finance for SMEs. Leasing is an important form of financing for the Dutch business community. SMEs conclude more than two-thirds of lease contracts. The leasing company finances the asset, and you pay a monthly fee for its use. Think of company cars, machines, computers, or photocopiers.

Leasing is a type of financing that you use for business assets.