Log in
Free trial
The Business Plan Shop
  • Our platform
  • Online business plan software
  • Online forecasting software
  • Business plan templates
  • Financial dashboards for small businesses
  • Pricing
  • Reviews and testimonials
  • Free trial
  • Log in
  • Help center
  • Who do we help?
  • Startup founders
  • SMB owners and CFOs
  • Financial advisors (consultants and accountants)
  • Resources
  • What is a business plan
  • How to write a business plan
  • Business plan outline
  • Alternative to writing a business plan with Excel
  • Easier way to create a business plan than Word
  • Free business plan template
  • More resources on our blog

What is a lease?

Leasing is a method of financing tangible fixed assets (vehicle, equipment, etc.). It works quite simply: the lessor buys the asset from the company and then leases it back to the company.

The lease is structured so that the rent paid by the business covers the terms of the loan taken out by the lessor to finance the acquisition of the asset.

Lease rentals are recorded in the P&L statement. The asset, on the other hand, does not appear in its balance sheet since the company is a tenant and not the owner of the asset. Leasing is generally accompanied by a purchase option enabling the company to acquire the asset at the end of the lease.

Was this page helpful?

Brilliant, thanks for letting us know.

Sorry to hear that.

How can we make this page better?

Easily create your
business plan

The Business Plan Shop | Business Plan Software

It's easy to create
a professional business plan
with The Business Plan Shop

Start Free Trial

Not ready to try ?
Learn more about our solution

  • Knowledge base
  • Glossary
  • What is a lease?

Our Platform

  • Free Trial
  • Online business plan software
  • Online forecasting software
  • Financial dashboards for small businesses
  • Pricing
  • Reviews and testimonials
  • Log in
  • Help center

Business Plan Templates

  • Restaurant business plan template
  • Hostel business plan template
  • Auto repair shop business plan template
  • Bakery business plan template
  • Other business plan templates

Resources

  • What is a business plan
  • How to write a business plan
  • Business plan outline
  • Alternative to writing a business plan with Excel
  • Easier way to create a business plan than Word
  • Free business plan template
  • More resources on our blog

The Business Plan Shop

  • About
  • Legal and data protection
  • Contact

Language

English | Français

Follow Us

Copyright © 2013 - 2023 The Business Plan Shop Ltd. All rights reserved.