Operating lease explained

The specific assets that are included under an operating lease can vary depending on the needs and requirements of the lessee and the lessor. Here are some of the most common types of assets that can be leased under an operating lease:

• Vehicles: Cars, trucks, buses, and other types of vehicles.
• Equipment: This can include construction equipment, agricultural equipment, medical equipment, and other types of machinery.
• Office equipment: Operating leases are often used for office equipment such as copiers, printers, computers, and other types of technology.
• Aircraft: Airlines and other companies in the aviation industry frequently use operating leases for aircraft.
• Real estate: Commercial properties such as office buildings, retail space, and industrial buildings can also be leased under operating leases.

• Off-balance sheet financing: Does not appear on the your balance sheet, which can improve your debt-to-equity ratio.
• Lower upfront costs: Allows an organisation to obtain the use of an asset without making a large upfront capital investment.
• Improved flexibility: Typically have shorter terms than capital leases so you can easily adapt to changes in their needs and requirements.
• Lower maintenance costs: The lessor is usually responsible for the maintenance and upkeep of the asset which lowers maintenance or repair costs.
• Access to newer assets: You can access newer, more advanced assets without having to make a large upfront investment in the technology.
• Tax benefits: Can provide tax benefits as the lease payments may be deductible as expenses.

You need to make sure that any financial decisions you make align with your goals and budget. But how do you know if an operating lease makes sense for your organisation? At Bluestone, our team of asset finance experts can help you determine whether an operating lease is the right choice for you.

We'll work closely with you to understand your goals, budget, and the nature of your organisation, and guide you through the advantages and disadvantages of operating leases. Our network of funders can provide you with a range of financing options to suit your needs, and we'll be with you every step of the way to ensure you make an informed decision.

With Bluestone, you can trust that our asset finance expertise will help you make the right choice. Contact us today to learn more about how an operating lease could benefit your organisation.