Traditional Operating Lease
In a traditional operating lease the Lessor makes a significant investment in the equipment, thereby assuming the risk of obsolescence, which reduces the lease payments that the Lessee is required to make. Equipment under an Operating Lease need not be shown on the balance sheet of the Lessee.
Benefits of an Operating Lease
In addition to the “off-balance sheet” benefits to the Lessee, an Operating Lease provides flexibility through the many options available to the lessee at the middle and end of the lease.
TIP Capital offers flexible operating lease options to solve your business needs. In addition, TIP helps you manage your assets with its innovative assetCONNECT™ asset management software and end of lease disposal services.
An Operating Lease can be designed with the following flexible options:
- Mid-Term Options
- Terminate the lease if the project ends
- Upgrade if needs expand
- Refinance to reduce monthly payment
- End-of-Lease Options
- Purchase equipment at a Fair Market Value
- Return equipment to the lessor
- Extend the lease on a month-to-month basis
- Renew the lease for a fixed term