What is a Finance Lease?
A finance lease is a long-term lease that allows you to use an asset for the majority of its useful life. This type of lease is similar to a loan in that you are responsible for maintaining the asset and making regular payments to the lessor. However, you do not own the asset and are typically required to return it at the end of the lease term. Finance leases are commonly used for assets such as vehicles, machinery, and large equipment.