Operating Lease is a low cost "Off Balance Sheet" method of funding.
An Operating Lease will not run for the full “life” of the asset and the Hirer will not be liable for it's full value. It is the Lender that will assume the residual risk.
This type of lease is normally only used when the asset has a long life span and definitive resale value.
A popular choice for VAT registered companies that want minimum outlay and maximum control of costs, especially when maintenance and relief options are included.
Features & Benefits
- Rentals and Return Conditions calculated on the future value of the asset.
- Lower rentals based on residual values.
- Enhanced return on assets from Off Balance Sheet funding.
- Avoids risk associated with asset ownership.