Capital & Operating Leases Explained

There are a plenty of different kinds of leases for you out there. We’ll go over two kinds in our latest blog post: capital and operating.

Capital Lease

The capital lease makes sure that assets are involved instead of money. It allows the contractor to use the assets on a temporary basis. This kind of lease is essentially a purchase of an asset.

Operating Lease

An operating lease is similar to a capital lease, but in one major way. This lease allows for use of an asset, but it does not give ownership of said asset.

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Posted in Finance, Leases