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What is an Operating Lease / Rental?


 An operating lease provides several advantages for your business. An operating lease is a type of lease whereby the financier retains ownership of the leased equipment.

Under an operating lease ownership does not automatically pass to the customer at the end of the term.

Think of an operating lease like a rental car – you use the car (or other goods) and pay for the time you have the car, and then hand it back at the end of the agreed period.  Once you hand the keys back, you have no further interest or involvement with the goods.

Operating leases are attractive for your business as they are not listed on a company\'s balance sheet. By not having to list the operating lease on the balance sheet the company\'s gearing ratios are not adversely affected.

For IT equipment, you can access the latest equipment because you have the choice to update or add to your contract at any time.

Under the operating lease option, you have a range of options at the end of the term.  These options include:

An operating lease is ideal for all types of business equipment including:

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