A survey on leasing with special emphasis on practice in Türkiye

Abstract

Leasing is a contract where the lessor (owner) purchases an asset and transfers its possession right to the lessee (user) for a specified period of time in exchange for a periodic rental payment. It is extensively used for investment financing all over the world especially in developing countries. It has several advantages in satisfying increasing capital needs of companies espesially in inflationary economies. Leasing allows use of equipment by the lessee without purchasing it and increases productivity and profitability by allowing companies to use scarce funds in more profitable investments rather than fixed asset purchase. It is introduced in Turkiye in 1985 with the law on Financial Leasing. I believe that leasing will be used widely in our country if the problems arising from legislation are solved and the investors are more informed about it.