What does operating lease mean?

1. Operating lease is a leasing business in which the leasing department of a large production enterprise or a professional leasing company rents our products to users. 2. The lessor generally owns its own leased property warehouse, and once the lessee requests it, it can directly lease the equipment to the user. At the same time, the lessor can also provide maintenance services for the lessee. The user pays the rent according to the lease and returns the equipment after the lease expires. This kind of leasing method is suitable for projects with short lease period and fast technology update. During the lease period, the contract can be terminated and the equipment can be returned, but the rent is relatively difficult. In this way, in order to recover the investment of equipment and obtain profits, the lessor must lease the equipment for many times in a row, so it is called "no liquidation" lease. 1. Lease form: 1. Financial leasing financial leasing is also called financial leasing. It means that the parties to the lease agree that the lessor will choose a third party (supplier) from the lessee to purchase the equipment selected by the lessee according to the lessee's decision, transfer the right to use the subject matter to the lessee on the condition that the lessee pays the rent, and recover all or most of the investment by collecting the rent during the uninterrupted long-term lease period. The lessor and lessee may agree on the ownership of the lease item at the expiration of the lease term. Where there is no agreement or unclear agreement on the ownership of the lease item, the ownership of the lease item belongs to the lessor. 2. Operating lease Operating lease refers to short-term lease, that is, the lessor rents the equipment to the lessee for a short time and provides equipment maintenance services. The lease contract can be terminated halfway, and the lessor needs to lease it repeatedly to recover the investment in the leased equipment.