liisingut

Liisingut is a financial arrangement in which a lessee gains the right to use an asset for a defined period in exchange for payments to the owner, the lessor. Legal ownership typically remains with the lessor during the lease, while the lessee enjoys use of the asset according to the contract terms. In Estonian usage, liising is the term for leasing, and liisingut is the inflected form used in sentences.

Leasing contracts are commonly categorized into operating leases and financial (or capital) leases. In an operating lease, the lessor retains most risks and rewards of ownership, and the asset is typically returned at the end of the term. In a financial lease, the lessee assumes many risks and rewards of ownership and may acquire ownership at the end of the contract; the asset is usually recognized on the lessee’s balance sheet.

Typical leased assets include vehicles, machinery, IT equipment, and real estate used for business activities. Leasing is used by organizations to manage cash flow, gain access to up-to-date assets, and defer large capital expenditures.

Tax and accounting treatment varies by jurisdiction. Lease payments are generally deductible as business expenses. In financial leases, the lessee may depreciate the asset and record a liability; in operating leases, depreciation and ownership remain with the lessor. Regulatory rules and consumer protections apply to lease agreements.

In Estonia and many other countries, liisingut is a common financing tool offered by banks and specialized leasing companies, governed by contract law and financial regulation. Global financial standards, such as IFRS 16, have influenced how leases are recorded on financial statements.