The Essence of Leasing and Its Place in the System of Financial Instruments for Enterprise Development

Abstract

The article examines the economic essence of leasing and substantiates its place within the system of financial instruments for enterprise development under conditions of economic transformation and the implementation of the sustainable development concept. It is demonstrated that leasing in modern conditions goes beyond its traditional interpretation as a form of rent or an alternative to bank lending and is increasingly formed as a mechanism combining financing and investment processes. The paper argues that a key feature of leasing is the structural linkage between the source of financing, the investment asset, and the mechanism of cost recovery, which ensures the alignment of financial obligations with the actual cash flows of an enterprise. The structure of the leasing mechanism is analyzed as a multi-component system that includes investment, financial, organizational and managerial, risk management, cash-flow, and strategic components. It is shown that leasing facilitates the renewal of fixed assets, technological modernization, and the strengthening of financial stability without creating excessive debt pressure. Particular attention is paid to the role of leasing in supporting the economic, environmental, and social dimensions of sustainable development, especially for entrepreneurial structures in the trade sector. The article concludes that leasing should be considered not merely as a tactical financial solution but as a comprehensive instrument for the long-term development of enterprises.