Operating Lease Finance
With an Operating Lease Agreement, the Financier owns the goods and you agree to use them for a specified time period during which the goods will complete a specific measurement such as distance or hours so it is best applied to motor vehicles.
Over the term of the lease, you don't gain any equity in the goods and upon completion of the agreed time or measurement period, whichever occurs first, you hand the goods back to the financier.
For accounting purposes, you claim the rentals as an expense through your Profit & Loss Statements.
