operating lease
- An agreement to rent property, specifically tools or appliances, for a time period that is less than the total possible years of use of the asset. Under this agreement, the party who leases out the property is accountable for specific costs such as taxes
- The company entered into an operating lease for its office equipment with the understanding that the lessor will handle the taxes.
- An operating lease can be a more flexible solution for businesses that need expensive machines but don't want to commit to a full purchase.
- In the office, all of our high-tech devices came through an operating lease, which allowed us to upgrade to newer models frequently.
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