Leasing

As a general rule there are 2 differing types of lease agreements: operating lease and finance lease.

Operating lease versus finance lease

A finance lease is a full pay-out agreement, meaning that the sum of the rentals includes the full capital cost of equipment and interest accrued. This type of contract extends over longer periods 12/24/36 months. And the lessee is responsible for maintenance and calibration.

An operating lease involves periodical payments for equipment which remain the lessor’s responsibility to maintain. These are normally shorter-term and don’t have any purchasing options. 

While operational leases appeal to businesses that do not want to deal with maintenance. Financial leases are more suited to those who do not want a large upfront cost when acquiring equipment.