How leasing works
Four parties are usually involved in a lease transaction:
Lessor - the leasing company which acquires assets (equipment, vehicles) on its own expense from the seller during a leasing transaction and offers it as a object of lease for temporary possession and use to a lessee, for a fee specified in the leasing agreement and for a certain period of time and under certain conditions.
Lessee - this is you, a private entrepreneur or company who in accordance with the lease agreement receives from the leasing company object of lease for a certain fee, for a fixed period of time, and under certain conditions in temporary possession to use for business purposes.
Supplier - a supplier of equipment, car dealer, or real estate company which in accordance with the sale and purchase agreement with the lessor delivers to the latter the property - the subject of the lease - you have selected, in due time and under certain conditions. Delivery and transfer of the subject of lease by lessor to lessee is performed by the seller in accordance with the terms of sale and purchase agreement signed by the supplier and the lessor.
Insurer - the insurance company which usually is a partner of the lessor or the lessee. The company is involved in the leasing transaction maintaining insurance of property, vehicles, and other types of risks associated with the subject of lease and /or leasing transaction.