Financial leasing

NACE code 64.91, 'Financial leasing', describes a crucial component of the financial services industry. 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 financial leasing process typically involves several key steps. First, the leasing company acquires the desired asset, often through a purchase from a manufacturer or supplier. The company then leases this asset to a customer, who makes regular payments over an agreed-upon lease term. At the end of the lease, the customer may have the option to purchase the asset, return it, or extend the lease. Leasing companies carefully assess the creditworthiness of their customers and the value of the leased assets to manage risk and ensure profitability.

The primary inputs for the financial leasing industry include the capital required to purchase the leased assets, as well as the expertise and infrastructure to manage the leasing process. Leasing companies rely on access to financing, such as loans or equity investments, to fund their asset acquisitions. Additionally, they require skilled personnel to evaluate potential customers, negotiate lease terms, and oversee the ongoing management of the leased assets.

The primary output of the financial leasing industry is the provision of leasing services to businesses and individuals. These leasing arrangements enable customers to access the equipment, machinery, and other assets they need without the burden of outright ownership. The outputs of the financial leasing industry are consumed by a wide range of other NACE codes, including 28.00 Manufacture of machinery and equipment n.e.c., 29.00 Manufacture of motor vehicles, trailers and semi-trailers, and 33.00 Repair and installation of machinery and equipment.