Finance lease

A finance lease is when one person (or company) wants to use something that belongs to someone else, but instead of just renting it like you might rent a toy, the person who wants to use it makes regular payments to the owner until they have paid for the entire thing. It's like buying something with money that you don't have yet.

For example, imagine your dad wants to borrow your neighbor's car for a year. Instead of just paying your neighbor to use the car for that time, your dad and the neighbor agree on a finance lease. This means that your dad will make regular payments to the neighbor for the use of the car over the year, and at the end of the year, if all the payments are made, the car will belong to your dad.

Finance leases are often used for expensive items like cars, heavy equipment, and office space. They can be a good option for people who need to use something long-term but don't have the money to buy it outright upfront. However, it's important to read the lease agreement carefully and make sure you understand all of the terms and conditions before agreeing to a finance lease.