Leasing

Question 1

What is Leasing?

Answer 1

When the owner of an asset , e.g. building or equipment, agrees to allow the lessee to use the asset, for specific amount time for a fee.

Question 2

Which are examples assets that can be leased?

Answer 2

• Land.
• Property.
• Equipment

Question 3

What are contractual implications of leasing?

Answer 3

• The contract is between the lessee (user of the asset) and the owner of the asset(lessor).
• The lessee rents the asset for a period of time.
• The lessee pays leasing charges to the lessor in regular instalments, usually monthly.

Question 4

What is the difference between leasing and hiring?

Answer 4

Leasing is for a longer time than hiring, and requires proof of finance.