A rental agreement. Many of the risks of ownership are removed. More and more assets are funded this way and are normally treated as off-balance sheet funding.
Operating Lease benefits
• Low initial outlay
• As a residual value is written within the deal this lowers repayments
• Fixed whole life costs of usage
• Flexible rentals to suit your cash flow requirements
• Tax advantages, payments are normally offset against taxable profits
• Off-balance sheet - check with your auditor