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Thursday, September 23, 2010

Roots Of Leasing

The history of leasing can be traced back as far as four thousand years ago. The documents found in the archeological dig in the 1980s of the ancient Samarian City of Ur are a proof that leasing was being done in the field of agriculture at that time. The items leased were hand tools for farming.

We find the first leasing laws a few decades later. They were enacted by the king of Babylonia in his famous Code of Hammurabi. The first leasing company also is reported in southern region of Babylonia around 400BC.

This company was opened by the family of Murashu. They leased things mostly in demand at that time like land, cattle, agricultural equipment and sowing materials. We find leasing being done in other parts of the land before time as well.

Ancient civilizations of Egypt, Greece and Rome have also been found in leasing activities of property. In the ancient Rome during the reign of Justinian we find laws for leasing enacted for the first time. We also find the Phoenicians actively involved in leasing of ships to sea merchants.

So we see that before the Middle-Ages, the rent on various forms of transport such as horses, ‎carts and carriages, were popular as they were the primary business activities and services.
However during the Middle-Ages the rent of houses was popular. Leasing had become a widespread phenomenon in the field of real ‎estate.

The horse-drawn carriages were leased in the United States in the 1700's. Leasing activities were also mentioned by the first president in his diaries. By the mid-1800's, railroads across the country were being financed 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.For Business Contract Hire and Contract Hire visit

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