An Operating Lease is a simple and cost-effective way for businesses to secure the necessary vehicles or equipment, roll maintenance and repairs into the package, and claim tax benefits. Why spend more to buy when you can pay less to rent? An operating lease is a simple and cost-effective way for businesses to secure the necessary vehicles or equipment, roll maintenance and repairs into the package, and claim tax benefits.
An operating lease is a contract that allows for an asset’s use but does not convey ownership rights of the asset. The lender will generally be responsible for the maintenance and service of the asset during the lease period. This allows your business to use the equipment without incurring the high expenses of purchasing it.
Similar to a commercial hire purchase, it’s also a good option for low-value equipment and technology with a short life span and quick obsolescence or equipment that needs to be upgraded frequently.
It’s a good solution for a business that wants to avoid taking on the risk of obsolescent or depreciating assets such as technology with a short life span. And you want to be able to update or upgrade the asset regularly. You’ll also enjoy tax-deductible lease payments and keep them off your balance sheet.