The party that owns the asset and receives lease payments.
For example, an equipment finance company acts as the lessor by purchasing a $90,000 forklift and leasing it to a warehouse operator for 4 years at $2,200 per month, retaining legal ownership of the asset throughout the lease while earning monthly income.
Why it matters: They assume the risk of asset depreciation and borrower default, earning a return through interest and the asset's residual value.
.avif)
.svg){kind=small}