Leasing

Leasing:-
• Meaning of Leasing:-
• A lease is a contractual agreement calling for the the lease to
pay the lessor for use of an asset.
• Leasing is a process by which a firm can obtain the use of a
certain fixed assets for which it must pay a series of contractual
periodic tax deductible payments.
• Broadly put a lease agreement is a contact between two parties
the lessor and the lessee. The lessor is the legal owner of the
asset the lesse obtains the right to use the asset in return for
regular rental payments .
• A lease is a very important financing option for an entrepreneur with
number of inadequate money for financing the initial investment
required in plant and machinery.
• In lease ,the lessor finances the asses or equipment and the lessee
uses it is exchanges of fixed lease rentals.
• In other words ,lease financing is an arrangement where the lessee
who requires th equipment or machinery gets the finance from the
lessor the agreed rental payments.
 Leasing Definition
• A lease is an agreement where by the lessor
conveys to the lessee,in return of rent ,the
right to use an asset for an agreed period of
time.
• A financing arrangement that provides a firm
with an advantage of using an asset,without
owning it,may be termed as ‘leasing’.