A Lease Purchase Agreement (LPA) is a contractual arrangement that enables a business to acquire an asset without having to buy it outright. It allows the business to “rent” the asset over a specified period and then, at the end of the contract, own the asset in full. The terms of an LPA are typically tailored depending on the needs of both parties—the business leasing the asset and the vendor who owns it. The agreement perks include lower up-front costs, tax advantages, flexible payment plans, and no hidden costs. With an LPA, businesses can bridge the gap between renting and owning, balancing risk with upside potential.