Operating Lease vs Finance lease
A finance lease is an agreement that allows your business the option of ownership of your asset at the end of the finance term, often with a final payment to clear the remaining debt. Any risk is your responsibility.
It is also treated as a company debt and is recorded on the balance sheet as such.
An operating lease allows you to rent an asset with no promise of ownership. As it is considered a rental, any risk is assumed to be the responsibility of the owner, and it can be claimed as an operating expense.
The agreement can be terminated at any time, allowing you flexibility as your business changes and grows.