Leasing allows a business to do what with an asset?

Leasing allows a business to rent an asset for a designated period, making it a flexible option for acquiring the use of equipment, vehicles, or property without the upfront costs associated with purchasing outright. This arrangement typically involves regular payments over the lease term, which can be advantageous for cash flow management. Businesses can benefit from using the asset without committing to its full purchase, which is especially useful for companies that require equipment for specific projects or short-term needs. Additionally, leasing often includes maintenance or service options, further reducing the burden on the business in terms of asset management.

Other options suggest different scenarios that leasing does not cover. Ownership outright represents a purchase, while financing through a loan indicates a commitment to buy the asset, and selling implies ownership, which leasing does not provide. Leasing is fundamentally about obtaining the use of an asset without transferring ownership.