Leasing is a form of financing whereby a leasing agent provides assets to the lessee for a specified period of time and for a fee. Its application creates numerous benefits for both the grantor and the recipient of the lease (as well as the economy as a whole), and its basic feature is the ability to provide, in the conditions of rapid technological development and the shorter expiry date of the assets, the possibility of achieving greater profit by using the property without explicit ownership. In addition, in the absence of its own sources of financing, as an alternative to bank loans, it represents a simpler, faster and more flexible way of financing. The aim of this paper is to determine the basic characteristics of leasing in the Republic of Croatia, to establish how and under what circumstances it developed, and to ascertain the importance of leasing as a relatively new form of financing in the Republic of Croatia in the external financing. In this regard, the leasing market in the Republic of Croatia has been analyzed, the main hypothesis has been established and confirmed, pointing out that leasing is still underutilized as a source of financing for companies in the Republic of Croatia, especially in relation to bank loans, which still holds a predominant share in financing. It also explores which forms of leasing and in which sectors and activities are most used. The paper also implies on the significant importance of leasing in the financing of companies and the possible changes in the future that could influence greater use of leasing for the companies as a source of financing.