What is an operating lease?
Struggling to decide between leasing and buying business assets? Discover the pros, cons, and factors to consider with DeMarque Finance’s asset financing guide.
Explore the different types of asset leases in Australia and learn how to choose the right one for your business needs with DeMarque Finance.
How Does an Operating Lease Work?
The financier purchases the equipment on the customer’s behalf and leases it to them for a fixed term with regular rental payments. The customer pays an agreed amount each month for the duration of the contract.
At the end of the rental term, the customer has several options:
Return the equipment to the financier with no further obligations.
Extend the rental agreement for continued use.
Upgrade to a newer model
Benefits of Equipment Rental
Our Commercial Equipment Rental solutions provide businesses with the flexibility to access essential equipment without the upfront cost of purchasing. With predictable monthly payments and customizable terms, you can preserve cash flow while keeping your operations running smoothly.
Preserve Capital: Avoid large upfront costs and maintain cash flow.
Flexibility: Return or upgrade equipment at the end of the lease.
Tax Advantages: Lease payments may be fully deductible as operational expenses.*
Off-Balance Sheet: The leased asset does not appear as a liability.
Access to Latest Technology: Upgrade to the newest equipment without owning outdated assets.
What Types of Businesses are Operating Leases Appropriate For?
Need equipment for short- to medium-term projects.
Rely on rapidly evolving technology or machinery requiring regular updates.
Want to avoid the risks and responsibilities of ownership.
Operate in industries such as construction, logistics, healthcare, or IT, where equipment flexibility is crucial.
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