Operating Lease
What is a Opereating Lease?
Similar to a Finance Lease, an Operating Lease allows you to rent the asset from us while you need it. The key difference between the two is that an Operating Lease is only for part of the asset’s useful life. This means you pay a reduced rental because the cost is based on the difference between the asset’s original purchase price and its residual value at the end of the agreement.
You get full use of the asset for as long as you need it, without the burden of responsibility of disposing of it or recouping its residual value.
Benefits of a Finance Lease.
- Low initial outlay - Quick access to the asset you need without a heavy upfront investment
- Freedom - Full use of the asset without having to buy it outright
- Flexibility - Option to re-rent, purchase or return the asset at the end of the term
- Pay less - Rental cost is reduced as it is based on a percentage of the original capital cost
- Off balance sheet funding
