Operating Lease Explained
When financing assets we offer a diverse range of financing facilities in order to meet your specific objectives to ensure you stay within budget.
An Operating Lease is an agreement for a fixed period of time, where payments are made in return for the use of equipment.
During the repayment period, Vision Asset Finance rents the asset to you. When calculating the rentals on an operating lease, the residual value of the asset is taken into account, significantly reducing the rental cost to the lessee.
Towards the end of the contract period you will be asked what you would like to do with the equipment at the end of the rental term.
You have two choices: –
- Return the equipment with nothing further to pay.
- Continue to use the equipment for a further period of time and pay additional lease rentals.
- The new rentals will be negotiated when the end of lease discussion takes place. The new rentals will be at “fair market value”. Extended use can be from a month to a number of additional years.