Financial leasing is an operation that transfers the use of movable or immovable properties acquired for that purpose in exchange for periodical payments.
The contract of a financial lease must include a purchase option for the client as the last instalment
The minimum length of these contracts is two years in the case of movable properties and ten years for immovable properties. The following individuals and institutions take part:
• A business (client) that needs a certain element of the fixed assets.
• financial firm that acquires and rents out the property (financial leasing business).
• A manufacturer or provider of the properties.
The financial leasing system is a type of long-term financing, since it allows the business to use fixed asset items without using their own funds or requesting a loan.