In brief

• Leasing allows you to use assets in exchange for installments, without paying the full price upfront.
• Finance leasing usually involves a later buyout, while operating leasing is mainly about using the item and then returning it.
• Before signing, it is worth reading the general terms and conditions, as they govern costs and liability.

What leasing is

Leasing is a form of financing in which an entrepreneur uses specific assets in exchange for agreed installments, rather than paying their full value at once. It most often concerns cars, machinery and other equipment. Throughout the term of the contract, the leasing company, i.e. the lessor, remains the owner of the item (Slovníček podnikatele: Leasing | BusinessInfo.cz – businessinfo.cz).

Finance leasing

Finance leasing serves primarily to acquire assets over the longer term. The user uses the item for many years, pays the installments, and bears most of the obligations and risks associated with its operation. After the contract ends, or during its term, the lessee usually buys the item.

Operating leasing

Operating leasing is more about use. The lessor takes care of the equipment's serviceability, and after the agreed period the item usually returns to them. A right to buy it is not standard, although it can be negotiated.

What to check before signing

The leasing contract alone is not everything. Equally important are the general terms and conditions, because that is where costs, rules of liability for damage, obligations for maintaining the asset and other user commitments may be described.