An operating lease is a contract that allows for the use of an asset but does not convey ownership rights of the asset.
Essentially, what this means is that the lessee can use the equipment over a fixed term, but there is no option to buy the asset at the end of the term.
Operating leases are counted as off-balance sheet finance. What this means is that any leased asset and associated liabilities are not included on the company’s balance sheet, protecting the ratio of debt to equity.
If you want to see how Kennet can help you and your business, get in touch with our friendly team by calling us on 01675 469200 or by clicking the link below.