This arrangement lets you free the money tied up in an asset for use elsewhere. You'll find that buildings are often leased this way. You may also hear leases described as net leases or gross leases . Under a net lease the lessee is responsible for expenses such as those for maintenance, taxes, and insurance. The lessor pays these expenses under a gross lease.
Financial leases are usually net leases.
Finally, you might run across the term full payout lease . Under a full payout lease the lessor recovers the original cost of the asset during the term of the lease. As the use of leasing has increased as a method for businesses to acquire equipment and other assets, the number of companies in the leasing business has increased dramatically. Leasing is now a billion dollar industry. Commercial banks, insurance companies and finance companies do most of the leasing.