An operating lease provides an alternative type of finance for large businesses who are concerned about financial efficiency by their gearing and a return on asset ratios.
Operating leasing is also often referred to as off balance sheet leasing and it is a really straight forward type of rental agreement where one party pays for the equipment during the leasing period. The overall equipment from which you get your assessable income is then returned to the financier prior to the contract ending. Then they are responsible for arranging to dispose of the equipment or its re-rental. But you cannot purchase the equipment once your agreement ends.
