Financial leasing

NACE code 64.91, '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 financial leasing process typically involves several key steps. First, the leasing provider assesses the creditworthiness and needs of the prospective lessee. They then source the desired asset from a supplier and structure a leasing agreement that outlines the terms, including the lease duration, payment schedule, and any options for the lessee to purchase the asset at the end of the lease period. Throughout the lease, the leasing provider maintains ownership of the asset and is responsible for its maintenance and insurance.

The primary inputs for the financial leasing industry include access to capital, a pool of potential lessees, and a range of assets available for leasing, such as 28.99 Manufacture of other special-purpose machinery n.e.c. and 29.10 Manufacture of motor vehicles. Leasing providers also require skilled personnel to evaluate credit risk, negotiate contracts, and manage the leased assets.

The main output of the financial leasing industry is the provision of leasing arrangements to businesses and individuals. These leasing services enable organizations to access the equipment, machinery, and other assets they need to operate and grow, without the burden of outright ownership. The outputs of the financial leasing industry are consumed by a wide range of other NACE codes, including 41.20 Construction of residential and non-residential buildings, 43.21 Electrical installation, and 46.69 Wholesale of other machinery and equipment.