What's the difference between financial leasing and ordinary leasing?

Financial lease is a long-term lease. If you rent the other party's equipment for five years and pay the rent every year, the other party will sell the machine to you at a fixed price after the expiration of five years, and the equipment will be yours.

Ordinary lease, also known as operating lease, is a short-term lease. After the lease expires, the general equipment shall be returned to the lessor.

Financial leasing means that the lessor purchases the leased property from the supplier for the lessee's use according to the lessee's choice of the leased property and the supplier, and the lessee pays the rent. After the lease term ends, the lessee generally buys the leased property at a symbolic price, and the ownership of the leased property is transferred from the lessor to the lessee. Ordinary lease generally means that the lessee pays rent to the lessor's existing items, takes them back for use, and returns the items to the lessor intact after the lease expires.