Operating Leasing
Main features of operating leasing:
•contract duration is lower than a good's commercial life, allowing for the latter's repeated lease
•the lessee can dissolve an agreement if the leased goods are useless or damaged
•risks and onuses arising from installation and maintenance of a leased good rest solely with the lessor, who is also the legal proprietor
•at the end of the term, the finance provider usually keeps the asset
•leased goods carry a purchase option, involving payment of their residual value at a set price
•an operating lease can have significant tax and financial advantages compared to alternatives such as hire purchase or a business loan
Characteristics:
•at the end of the term, the lessee returns the asset to the lessor, extends the agreement if it is needed or purchases the leased goods after paying the rest value
•the lease term is short compared to the useful life of the asset or piece of equipment and leasing payments don’t cover the full price of leased goods
• operating lease provides off-balance sheet financing as well as flexible cash flow management, doesn’t affect existing credit relationships
Benefits:
Contrary to financial leasing, which helps you acquire equipment but leaves the maintenance and administration up to you, the full-service operational leasing will free you from such exasperation - the company offering operational leasing services will arrange all these things for you
Having taken the advantage of our services, you will get rid of paperwork associated with your equipment management. You won't have to arrange registration, servicing, insurance … and you will do your job.