A finance lease is a type of lease agreement where the lessee (the user) pays for the use of an asset, such as equipment or vehicles, over a specified period. Unlike a traditional rental, the lessee has the option to purchase the asset at the end of the lease term for a predetermined price. This arrangement allows businesses to use expensive assets without the upfront costs of buying them outright. In a finance lease, the lessor (the owner of the asset) retains ownership, but the lessee is responsible for maintenance and insurance. This type of lease is often used in industries like construction and transportation, where companies need access to costly equipment without tying up capital.