How does leasing work?
Leasing operations always involve the participation of three subjects: the seller (or producer), the leasing company and the lessee. The standard leasing operation procedure is as follows:
- The seller and the leasing company conclude a purchase contract upon which the leased object becomes the property of the leasing company, which remains its owner for the lifetime of the agreement
- The lessee and the leasing company (the lessor) conclude a leasing agreement which establishes the relationship during the leasing period and usually resolves the situation upon the termination of the leasing agreement (the purchase of the leased object)