Financial leasing is when a leasing company rents a physical item or service to a business or individual for a specified length of time (often with the option to buy the asset at the conclusion of the contract) in exchange for regular payments.
The lessee is the person who receives the assets or services under the lease agreement, whereas the lessor is the person who owns the assets or provides the services. Passenger cars, light trucks, furniture, office equipment, appliances, and heavy equipment, such as earthmovers, huge machinery, and industrial equipment, are all examples of leased assets.
Operational leasing is when a leasing firm owns and services the leased physical asset, as well as being responsible for its installation and operation.
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