What's the difference between financial leasing and (traditional) leasing?

An essential difference between financial leasing and traditional leasing is that traditional leasing calculates the rent based on the time when the lessee leases the property, while financial leasing calculates the rent based on the time when the lessee occupies the financing cost.

The similarity between financial leasing and traditional leasing lies in that both of them take things as the carrier and rent them to the lessee for use in order to obtain the corresponding consideration. However, by comparing their definitions and transaction structures, we can see that financial leasing has fundamentally changed from traditional leasing in the choice of leasing objects, which is an important issue of investment decision-making power in leasing transactions, and thus derives their differences in transaction parties, transaction structure and transaction purpose.