Operating Lease

An Operating Lease facility conserves working capital by providing off balance sheet funding and rentals based on the planned economic use, rather than the life of an asset.

It allows full use of an asset whilst paying rentals during the agreed period which is usually for two or three years but can be much longer, with a residual value at the end of the agreement therefore an Operating Lease does not need to recover the full cost of the equipment through the lease rentals.

It may also be possible to extend the rental agreement at the end of the primary term before finally returning the asset.