Financial leasing

isic code 6491, 'Financial leasing', describes a crucial industry within the broader financial services sector. Financial leasing involves the provision of leasing arrangements for equipment, machinery, and other assets to businesses and individuals. This industry plays a vital role in facilitating capital investment and enabling organizations to access the resources they need to operate and grow, without the upfront cost of ownership.

The key steps in the financial leasing process involve the leasing company purchasing the desired asset from a supplier and then leasing it to a customer for an agreed-upon period, with regular rental payments. The leasing company retains ownership of the asset, while the customer has the right to use it. Careful assessment of the customer's creditworthiness and the asset's residual value are critical components of the leasing process.

The main inputs required for the financial leasing industry include access to capital to purchase the leased assets, as well as specialized knowledge and expertise in areas such as asset valuation, risk assessment, and contract management. Leasing companies also rely on strong relationships with equipment suppliers and a thorough understanding of the various industries and markets they serve.

The primary output of the financial leasing industry is the provision of leasing arrangements to businesses and individuals, enabling them to access the equipment, machinery, and other assets they need to operate and grow their enterprises. The outputs of this industry are consumed by a wide range of other 6910 Legal activities, 6920 Accounting, bookkeeping and auditing activities; tax consultancy, and 7010 Activities of head offices, among others.