Two business partners shaking hands

What is a Lease Businesses?

There are different types of businesses and each one has pros and cons. Not everyone has thousands of dollars to outright buy items, which is where lease businesses come in. The special part of a lease business is allowing a customer to use an asset without paying a high price to obtain it. An asset can be anything that another person can use. It can be property, TVs, cars, CDs, or computers. The customer makes an agreement with the seller to use the asset for a set period of time for a specific price.

Most assets have a limited lifetime, so as a seller, make sure the price is set high enough to at least break even on the money spent to buy the item. The downside for lease businesses is it might be more expensive to rent an asset than it is to just buy it. That is why the customer has to make sure the transaction is worth it in the long run.


There are many different types of leasing businesses, but a popular one is automobiles. The company rents out its cars to customers for a set period of time for a fee. Some common vehicle rental companies are Europcar, Enterprise, Hertz, and Alamo. The car companies make a profit by buying many cars at once then renting them out at a higher price than what they were bought for.

Contruction Equipment

Construction equipment works similar to car rental companies. Leasing allows the customer to spend less upfront costs and have the equipment for a set period of time. Some examples of equipment that can be acquired are mini excavators, skid steers, and multi-terrain/compact track loaders. Construction equipment can be rented for commercial or personal use. A benefit to renting construction equipment is that it lets the customer try before buying if that is the route they are going.

Understanding the Lease Business Model

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