Operating Lease

An operating lease is a type of asset lease. How does it work and how will it be beneficial to your business? Find out more below.

FinCred CF is an expert in operating leases, and as a broker can help you find an operating lease to suit your business.

What is an Operating Lease?

An operating lease is a type of lease agreement that allows you to effectively rent a piece of equipment for a short period of time (for example, over one year). 

Operating leases are not tied to the lifespan of the asset you are leasing and the responsibility for maintaining and insuring the asset falls on the leasing provider (lessor). Your business will not take ownership of the asset at any point during an operating lease and the asset will not be shown on your company’s balance sheet.

What is the Difference Between an Operating Lease and a Finance Lease?

With an operating lease, unlike a finance lease, there is no option to take ownership of the asset. Furthermore, with an operating lease your business would not be responsible for the maintenance or insurance of the asset, whereas with a finance lease it would be.

There are also differences in how these leases are recorded in your company’s account. An operating lease is more likely to be a short term arrangement and the asset will not be recorded on your balance sheet.

How Much does an Operating Lease Cost?

The cost of an operating lease can vary depending on a range of factors including:

  • The asset you want to lease
  • The financial strength of your company
  • Your credit history
  • The period over which you are leasing
  • The proposed use of the asset
  • The maintenance costs involved with the asset and insurance costs.  

Get in touch to get an exact quote for operating leasing. 

Work with Fincred, You Partner in Operating Leasing

Finding the right operating lease agreement for your business isn’t always easy. But as an experienced broker in operating leasing (and finance) we can help guide you through the process and provide any advice you may need.

We understand asset leasing can be difficult, but it doesn’t have to be. Find out what we can do for you today by getting in touch.

We work in partnership with our sister company, FinCred IS, to offer you surety bonding and trade credit insurance policies which can complement and facilitate your operating lease agreement.

UK Wide Industry Statistics

Total value off all sales financed in the UK - £bn

Domestic invoice discounting - £bn

Total number of asset based lending clients

Domestic invoice discounting clients

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