In this study the term leasing and terminology such as leasing classification, legal aspects of leasing, formation of leasing charges (fees) are explained, as well as leasing-related notions (object of a leasing contract, leasing company, leasing contract and its mandatory elements, provider and receiver of the cease, and so on). It describes what can be financed through leasing, main characteristics of constructing leasing business and the differences in relation to other ways of purchasing equipment such as using bank loans, through self-financing and other similar methods. The business activity of leasing companies in the Republic of Croatia in the period 2012.-2016. is analysed, calculations of operating and financial lease are compared and the advantages and disadvantages of leasing are presented.