Equipment Leasing Programs - Operating Lease

Our previous post contained examples of typical leasing programs. As with any other financial transaction, you need to be certain that the structure of your lease should match your business goals and cash flow requirements.

One of the most common types of leasing is an operating lease. What is an operating lease and what can it do for me and our company? Well, let's look at the basics.

Operating leases are a form of off-balance sheet financing that provides the option to continually upgrade or replace your current equipment without the worry of ownership. End of lease options allow you to return the equipment so that technological obsolescence is avoided. You will find that an operating lease will have a lower monthly payment than other lease / finance alternatives.