Lease Financing is process when a company seeks for funding to obtain equipments for business. Many Finance companies and banks that sell high priced equipments can provide lease facilities.
When you lease equipment, the ownership of equipment retains with the lessor. You use the equipment by paying monthly payments. However, you can purchase the equipment when lease time period gets over at its market value or less.
One of the great advantage of leasing is that lease does not appears as a debt in the balance sheet. They represent an ongoing company liability.
These are some of the topics under Lease Financing. However, this topic is quite vast and covers many more topics under it.
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