An equipment lease is a contract that transfers the right to use equipment to the lessee (the lease customer) in return for monthly lease payments to the lessor (the leasing company).
Leasing is a method of funding that keeps money in your business rather than tied up in depreciating assets, with regular repayments to meet your cash flow and budgetary requirements over a time frame to suit you. It’s a cost-effective alternative to paying cash.
The key principle is that the use of equipment in a business produces benefits, not ownership. Leasing delivers that use with the flexibility to structure payments that maximize customer returns over the life of the agreement.