A contract that allows for the use of an asset, but does not convey rights of ownership of the asset. An operating lease is not capitalized; it is accounted for as a rental expense in what is known as “off balance sheet financing”.

Features and benefits of Operating Lease include:

• Boosts cash flow by reducing your monthly payments (monthly rentals are based on the
  depreciation of the vehicle, not the full purchase price)
• Keeps your assets off your company balance sheet as the vehicle remains in the ownership
  of the funder for the full term of the lease
• Keeps running costs to a minimum, with lower monthly costs than hire purchase
• Low deposit option and choice of fixed or variable interest options

Operating Lease is suitable for:

• Single vehicle or fleet purchase
• New or used vehicles
• Bus, coach or mini-bus purchase
• Particularly suited to businesses who want to keeps costs as a minimum