What is Leasing?

A lease is a contractual arrangement in which a leasing company (Lessor) gives a customer (Lessee) the right to use a specific property for a specified length of time with a specified monthly payment. Depending how the lease is structured, the customer can purchase, return, or continue to lease the property once this agreement expires.

Definitions

Lessor

Associations of capital as licensed to exercise the financial leasing activity according to the provisions of the present Law, is the owner of leased property subject to Lease Contract.

Contract

The financial Lease Contract.

Supplier

The party from which the lessor receives properties which are subject of a Financial Leasing Contract.

Property/Properties

All realty, or physical or moral movable which is a subject of financial lease contract.

Lessee

Is the party that purchases the usage rights of specific property owned by the lessor for a definite period of time. In return, the lessee agrees to make periodic payments (rentals) to the lessor.