Leasing, also known as a credit lease in French, is a financial arrangement that allows a person or company to acquire the use of a movable or immovable property without having to purchase it outright or borrow money to do so. In a leasing contract, the lessor (or renter) purchases the desired property and makes it available to the lessee (or tenant) in exchange for periodic payments, usually in the form of rent.
Leasing is commonly used in a variety of industries, such as automotive and business equipment. For example, a business may choose to lease business equipment rather than purchase it outright. It then pays regular lease payments to use the acquired equipment for a specified period of time. At the end of the lease, the lessee may typically have the option to purchase the asset at a pre-agreed price, renew the lease for an additional period, or return the asset to the lessor.