Operational Leasing is like renting
By Leasing , you can expensive products to Fund, for example, cars. The lease leaves it to the donor to the lessee in the product for a agreed period of use and receives regular payments, the rates of leasing. Such leasing of shafts according to different criteria, are different. A variant is called the Operating leases, including Operating or Operating leases.
- The essential feature of the Operating lease is that there is no fixed basic leasing period. The leasing company will provide the customer with the Leased asset against payment of the leasing instalments.
- In General, both contractual partners have the right of cancellation. Alternatively, the termination can be excluded, then the contract is completed but a very short duration.
- At the end of the term, the lessee returns the lease object. An option to purchase it. The product remains the property of the lessor. He must write it off over its useful life.
- The lessor shall also bear the economic risk. This applies to Defects and repairs, and the lessor is responsible. In addition, he has to bear the risk of technical Obsolescence to. Due to the short-term tenancies, he will have to rent a leased item as often as possible.
- Operational Leasing is suitable for a short-term and temporary need, such as replacement, repair failures of production machines. In addition to machines all other objects for Operating leases into consideration, which can at any time rent, to office spaces or buildings.
Operating leases: short-term and temporary leasing variant (image: Pixabay)
Advantages of leasing form
Operating Leasing is a flexible Form of financing in order to Finance temporarily the products. Thus, bottlenecks in production or other areas of the company can be a good bridge.
- Due to the lack of basic rental period the lessee uses the object only for as long as he needs it really and do not need to bind to fixed maturities.
- In contrast to other lease not the responsibility of the lessee to the repair and maintenance of the leased items, shapes. This is the responsibility of the Lessor.
- The lease the lease may be recorded rates of borrower as an expense. The operating lease is not, to the detriment of his credit rating.
- Real Leasing: Renault Zoe for less than 100 euros - the electric car-bargain
In the next article we will explain to you the difference between Leasing and financing.
