An operating lease is a short-term off-balance-sheet lease agreement. This type of lease is not recorded on the lessee’s balance sheet. This type of lease typically spans a small portion of the asset’s useful life, and the lessor retains the risks and benefits of ownership. For example, in an operational lease, the lessor is responsible
See Also: The Dilemma of Financing a Start Up Company Lease Agreements Operating Lease Sale-and-Leaseback Lease Term Financing Lease Definition The financing lease definition, also known as a capital lease, is a method of deferred payment. If the lessee is willing to pay the additional cost of interest, then they can use a financing lease
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