Leasing, one of the financing techniques, allows a company to use some of its operating Fixed assets (i.e. buildings, plant and other Fixed assets) under a rental system. In certain cases, the company may purchase the asset at the end of the contract for a pre-determined and usually very low amount. A leasing transaction is called a Lease. There are finance Leases and operating Leases.

(See Chapters 7, 22 and 36 of the Vernimmen)

To know more about it, look at what we have already written on this subject