By Charlotte GAUCHON
2 April 2025
Although equipment leasing offers many advantages to the lessee, it represents an investment and therefore a risk for the financial institution that buys the equipment and makes it available. How does the lessor protect itself against possible hazards, such as non-payment of rent or damage to the equipment? What happens when the contract comes to an end? Understanding these aspects is useful, even for you as a lessee, because they structure the contractual relationship and determine the consequences of certain events. This article explores the main guarantees that secure the transaction for the lessor, as well as the different ways in which a leasing contract can be terminated, either at its normal expiry date or early. Guarantees protecting the lessor Several legal and contractual mechanisms aim to secure the transaction for the leasing company. Ownership of the asset: the fundamental guarantee...
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