Leasing is a financing arrangement where a business rents an asset for a specific period rather than purchasing it outright. The business makes regular lease payments to use the asset, and at the end of the lease term, the business can either return the asset, renew the lease, or sometimes purchase the asset.

Leasing is ideal for businesses that need access to expensive equipment, vehicles, or technology but prefer to avoid the upfront costs of purchasing these assets. It’s particularly beneficial for businesses that require regular upgrades to their equipment, such as in technology, healthcare, construction, and transportation industries, where keeping up with the latest advancements is essential.