The financier purchases the equipment and rents it to you for agreed payments over a fixed term. While similar to a Finance Lease, an Operating Lease has greater flexibility both during and at the end of the term, with upgrades, variations and even a path to ownership all available. It can obviate the need for government and semi-government entities (and some companies with audit and balance sheet reporting obligations) to report the transaction as a “loan”, as can a finance lease.

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