Leasing is a type of agreement in which an individual or business rents an asset from another party for a specified period of time. It is similar to renting, but with leasing, the lessee typically has the option to purchase the asset at the end of the lease term. Leasing is often used for large purchases such as cars, real estate, and equipment. It can also be used for smaller items such as furniture and electronics. Leasing is beneficial for both parties involved, as it allows the lessee to use the asset without having to pay the full cost upfront, while the lessor can generate income from the asset without having to sell it.