About financial leasing

Modern Equipment leasing originated in USA in 1950 ' s and developed in Europe and Japan in the 1960 ' s and the rest of the World thereafter. As for Egypt the issuing of the leasing law number 95 was in June 1995. Leasing developed as an alternate source of funding in all developed and newly industrialized countries; the growth of leasing paralleled the growth of the respective economies.

Leasing has added a new dimension to modern financial management. The basic concept of leasing is that profit is earned through use of an asset and not its ownership. Leasing effectively increases the total availability of capital as it diversifies the sources of finance available to a business.