Finance Lease

Overview

A finance lease is a financing method whereby a business leases a piece of equipment with the option to purchase it at the end of the contract.

Common Use Cases

• Acquiring expensive equipment.
• Preserving the company's capital.
• Gaining financial flexibility.
• Planning expenditure.

Examples in Small Businesses

• Leasing industrial machinery.
• Financing company vehicles.
• Trying out equipment before buying it.