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A B C D E F G I K L M O P Q R S T V Y

What is an Operating Lease?

An operating lease is a leasing contract which contains terms that are short relative to the useful life of the asset in question.

These types of leases are used in order to acquire equipment on a short-term basis.

A good example would be an airplane which has an economic life of 30 years, may be leased to an airline company for 6 years on an operating lease.