Operating lease; What is an operating lease?

A simple way to Rent your assets without the commitment of ownership

Operating Lease

a flexible funding option

How Does an Operating Lease Work?

An operating lease in finance is an agreement that allows your business to use and operate assets without committing to ownership. 

With an operating lease the agreed-upon rental term is typically shorter than the life of the asset. 

This is an ideal solution for businesses that use heavy machinery, aircraft, or vehicles to name a few.

By choosing to lease your equipment with Coates Finance you can treat your assets as operating expenses.

operate assets without committing to ownership

What is the Difference Between an Operating Lease and a Finance Lease?

Operating Lease vs Finance lease

A finance lease is essentially a lease agreement that allows the business the option of ownership of the asset at the end of the agreed-upon term.

An operating lease is the rental of an asset with no promise of ownership. Because of their differences, an operating lease and a finance lease are accounted for in different ways.

A finance lease is treated as a company’s debt and is recorded on the balance sheets whereas an operating lease is treated as an operating expense. 

An operating lease also devoids you of any risk of ownership.

Operating lease; What is an operating lease?
Operating lease - Business Partners checking data in front of a computer

helping your business to own the equipment

What are the Advantages of an Operating Lease?

Benefits of An Operating Lease

Deciding whether or not an operating lease is an ideal solution for your business doesn’t have to be difficult.

An operating lease can be beneficial to your business if you meet any of the following criteria:

  • You will use the equipment for a short period of time.
  • You have limited cash flow- a lease cuts out the onset costs of obtaining equipment for your business.
  • Your equipment or technologies will need constant upgrades to remain current.
  • You want to reduce your debt and increase your available cash- operating leases are treated as an operating expense and therefore do not need to be recorded on your balance sheet.

What happens at the end of an operating lease?

Unlike a finance lease, when an operating lease ends the ownership of the asset is not transferred to the lessee. 

The title of the asset will remain with the lessor, in this case, Coates Finance or one our funding partners. 

At the end of your operating lease, you will be able to either; renew your agreement with us or return the equipment.

what can you finance with an operating lease?

Here’s a list of some of the assets you can operating lease

  • Biomass boilers
  • Catering Equipment
  • Commercial Vehicles, including cars, vans and lorries
  • Construction equipment
  • EPOS Till Systems
  • Event Furniture
  • Forklift Trucks
  • Garage Equipment 
  • Hair Salon Equipment
  • HVAC Systems
  • Office Equipment, computers and Furniture
  • Restaurant Kitchen Equipment 
  • Shop Fittings and
  • Refurbishments
  • Sports and Racing Cars
  • Vehicle Tracking Devices
  • Veterinary Equipment such as scanners and lasers systems.

If you’re looking to fund something else – just complete the short form below or give us call today. We can finance almost any business asset.

Your business can purchase equipment without paying the whole cost upfront

Why use an Operating Lease for Business?

Choosing an operating lease for your business, not only releases you from the risks of ownership of an asset but gives your business more flexibility.

Leasing ensures that your equipment will never become obsolete because you can simply lease newer equipment.

Highlights of the benefits of an operating lease

  • Avoid the responsibility of ownership so you can replace or update your equipment as often as needed.
  • Lower monthly payments so you can free up cash flow for your business right now.
  • Personalized payments to match your budget.
  • Fixed terms and conditions from the beginning so you can budget for the future.
  • You have options when the lease ends; renew the agreement or return the equipment.
  • Claim your payments against your profits and reclaim VAT on the asset.
  • An operating lease works as an operating expense on your balance sheet.
Business woman working on her finances -Why Use An Operating Lease
Business woman working on her finances - Why Use An Operating Lease

a flexible funding option

How to Apply for An Operating Lease

Here is how you can start the process and apply to get your Operating Lease Agreement in place.

Before we can successfully process your application, there are a few requirements that your business must have in place:

  • Applicant must be a Limited Company or Limited Liability Partnership
  • The company must be based in the UK
  • Company MUST NOT have any CCJs

If your business passes the above criteria, you’re on your way to pre-approval.

Now, all that you have to do is complete the application form so that we can verify some of your credentials to see if you qualify to work with us.

Complete the short form below to go through our pre-approval process where you can speak to one of our knowledgeable finance professionals for a FREE quote.

Working With You To Grow Your Business​

Why Choose Coates Finance?​

Key benefits of working with Coates Asset Finance

  • Fast decision: Get a fast and responsive decision of an offer in 24-48 hours without having to approach your bank, so you can spend more time growing your business.
  • Simple Process: Short, easy-to-complete application forms without the complicated jargon so you fully understand the terms of your agreement
  • Personalised Solution: Obtain a cohesive solution to your unique financial circumstance and raise the cash to purchase the assets you need.
  • Cash Release: Fund your growth with the with £2000 - £500,000 that we can help make available for you to scale your business.
  • Specialised knowledge: Draw on our years of practical expertise in a variety of sectors to ensure you achieve your desired funding solution
  • Full Transparency: We work with a number of lending partners and will provide independent impartial advice so you always get the best deal and the best rates
  • Pay in instalments: Spread the cost of your purchases over a period of time that’s right for you; 3 month - 60 months
Fast decision
Get your finance offer in 24-48 hours. Short, easy-to-complete application forms
Personalised Solution
Obtain a cohesive solution to your unique financial circumstance and raise the cash you need
Cash release
Fund your growth with the extra money that we can help make available for you to scale your business
Specialised knowledge
Draw on our years of practical expertise to ensure you achieve your desired funding solution

Get Started

Partner with Coates Finance

Here is what we need to get started with your Operating Lease Application

Fast Finance in 3 Easy Steps

Our friendly team of experts are waiting to assist you and your company.

We’ll help you finalise a solution that meets your needs, and take the hassle out of the decision-making process so you can spend more time on what matters to you most – growing your business.

We have streamlined the application process and made it super simple to apply for the funding you need.

Complete the short form below and let’s get started today.

Complete the form below and speak to one of our knowledgeable finance professionals, who will answer your questions and guide you through the final steps to a solution that works for you.

Call us on 01904 492851 

You can also give us a call if you need immediate answers to your questions. Our friendly experts will happily answer any questions you may have before you begin your application.

Lines are open
9:00am – 5:30pm Monday to Friday
(excluding UK bank holidays)

3 steps to success

We'll Help You Every Step Of The Way

Follow the simple 3 step process to finance your business today.

Once you have completed the first step, we will get you on a call to answer any more detailed questions you may have and move quickly towards getting your financial requirements successfully approved

01

Complete the Form

Complete the simple form below and apply online for the amount you need to grow your business

02

Receive Fast Approval

We will process your application and aim to get you approved for your desired amount in 24-48 hours

03

Get Funded

Congratulations!

Now you’ve been approved, you can acquire the assets for you require to grow.

Let's Get Started

All you need to do is complete the form and submit your application to get started today

  • Partner with one of the UK's leading finance solution providers
  • Get sector specific solutions from the "smartest people in the finance industry"
  • Apply in minutes and see funds in your account in as little as 48 hours
  • Access funds from £2000 - £500,000
  • FREE tailored quotation with no obligation

Get your FREE business finance quote today

Get your FREE business finance quote today

Complete the form and submit your application to get started today