Leasing is considered as a special type of financing, which depending on the type of contract, can have characteristics of rent/lease (operative lease) or purchase and sale (finance lease).

Term leasing derives from the English word “to lease” and it is translated with «leasing» or with «give into lease».

Main postulate of financing via leasing is as follows: using the object instead being its owner.

Advantages of leasing financings for small and medium entrepreneurs

• Tax benefits – possibility of tax deductible expenditures
• Profit tax can be reduced
• VAT can be deducted as pretax
• Leasing installments are paid out of incomes
• Better realisation of financing

Leasing is particularly good type of financing based on accounting and tax point of view as paying leasing fee represent relative costs for entrepreneur (tax deductible expenditure).

As the lessee does not own the lease object and is not entered under the balance sheet of the lessee, leasing financing does not encumbrance the lessee's credit ability (operative lease).