BLM00010 - Introduction: Leasing: What is leasing?
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A lease is an agreement whereby one person (the lessor) hires an asset to another (the lessee) for a series of rental payments over an agreed period of time.
Leasing can cover anything from the hiring of a power tool for a day or so through the hiring of a car for months to the hiring of a fleet of aircraft for decades or the hire of a building for centuries. Where assets are hired for longer periods they are usually referred to as being ‘leased’ rather than ‘hired’ but there is no clear distinction between the two terms.