operating lease

Definition

A lease for which the lessee acquires the property for only a small portion of its useful life. An operating lease is commonly used to acquire equipment on a short-term basis. Any lease that is not a capital lease is an operating lease.

Use operating lease in a sentence

You should try to make sure that you know everything involved in your operating lease and never default on it.

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The operating lease was chosen instead of the usual capital lease because of the short expected duration of our project.

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Marcus was looking to get an operating lease for some welding equipment so that he could fix his great-grandfather's submarine.

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