Leasing as a Method of Investment Financing

Constant searching for new forms and new ways in financial construction, investments, searching new sources for their realization, as well as permanent tendency of economic entities to join the latest trends of technical and technological development, have resulted in the creation of a new method for investment financing, which is, in international business practice, known as „leasing“. Leasing is not a physical event, but a business and financial engagement. Leasing is a new method of investment financing, which is made in business practice. Leasing, as a defined business activity, appears in the 50s of the 20th century in the USA, as a product of the tendency to bridge the gap between the need to use the appropriate funds and the lack of conditions to obtain these funds under the usual commercial conditions. The mentioned gap could be overcome only by innovative approach, which involves the agent who owns those funds and has a combination of financing. After the initial conditions in the USA, leasing began to spread in Europe, where it provided the significant contributions to the development of economy, primarily due to the easiness and simplicity of financing.