Experience accumulated in many countries is indicative of the fact that leasing is universal financial instrument for permanent renovation of material and technical facilities of many manufacturing units. For Ukraine which is in extreme need of fixed assets renewal in all industrial areas, the development of leasing market is of significance. The concept “lease” comes from the West, where it has existed for more than 100 years, and is new enough for Ukraine. Due to the fact that there is no single approach in comprehension of the concept “lease”, its interpretation is highly disputable.To understand the leasing mechanism it is necessary to study its history in more details. The word “leasing” is a respective transcription of an english word “lease”, which means to use some asset under lease terms. Ukrainian legislation provides that leasing should be interpreted as a business activity aimed at investing own or borrowed funds into fixed assets' renovation. Leasing process is defined as transferring of fixed assets into long use to lessee for a certain fee; lessor meanwhile remains the owner of the leased assets during the lease agreement term. Following on from that leasing is simply considered to be a process by which lessee can obtain the use of a certain fixed assets for which it must pay a series of periodic payments. Lessee pays to leasing company a monthly payment and uses equipment for a specified period stipulated in a lease contract. It allows renewing of lessee’s funds without involving of loans and expensive capital outlay. As a rule, repayment of periodic installments is accomplishable owing to the profits derived from productive use of a leased machinery or equipment.
The object of a lease agreement can be either tangible or intangible assets (non-consumer item), which are referred to an enterprise fixed assets and are used for business purpose. For instance, transport vehicles, industrial equipment and machinery, high-tech equipment. Land plots and other natural sites, integrated property complexes of enterprises and their separate organizational units (branches, workshops, and sections) can not be selected as the object of lease.