How Leasing Gained Popularity
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The history of leasing can be traced back as far as the year 2010 BC. The documents which were basically in the form of clay tablets found in the archeological remains of the ancient Samarian City of Ur show leasing done in the field of agriculture. The items leased were farm equipments that were at that time only hand tools.
The first leasing laws were enacted in the same era as well. The king of Babylonia had made the Code of Hammurabi. The first rent company also is reported too in southern Babylonia around 450 to 400BC.
It was opened by the family of Murashu. They were into land, cattle, agricultural equipment and the hire purchase of sowing materials. This was the story of Persian Empire.
There are also records that show ancient civilizations of Egypt, Greece and Rome engaged in leasing activities of real and personal property. During the reign of Justinian we find laws for leasing enacted for the first time in the ancient Rome. We also find the Phoenicians actively involved in leasing of ships to sea merchants.
In the Middle-Ages, the rent on various forms of transport such as horses, carts and carriages, were popular. However during the Middle-Ages the financing of houses was popular. Leasing had become prevalent in the field of housing and real estate.
In the United States we see leasing first appearing in the 1700's to finance the horse-drawn carriages. We see President George Washington mentioning leasing activities in his diaries. By the mid-1800's, there were railroad tycoons in the US spreading a network of private railroads across the country and financing their activities through leasing.
The banks thought locomotives, cars and other railroad equipment were too risky and so they devised new and creative methods for their financing. The British Birmingham Wagon Company was registered in 1855 as the first leasing company in the new world. Soon after in England we see railroad cars being financed on lease agreements.
Leasing returned to popularity during World War II when financing was needed hugely. Manufacturers entered into contracts with governments on both sides on the war. Today almost everything under the sun can be leased right from your writing equipment to your estate.
Article Source: Articlelogy.com
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