Definition
Leasing is, similar to a rental agreement, a financing method. The lessor makes the leased object available to the lessee in exchange for a monthly installment. In return, the lessee receives a time-limited right of use (e.g., for a car or a machine). However, ownership remains with the lessor.
In contrast to a rental agreement, the lessee is responsible for maintenance and upkeep, as well as repairs. At the end of a term, the lessee can return the leased object or purchase it at its residual value.
Commercial leasing offers tax advantages, as it can generally be deducted as ongoing operating costs.