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Operating lease

An operating lease contract is similar to a long term rental agreement.A typical contract involves the payment of equal monthly rentals over a pre-defined period. Under the lease agreement, the customer does not have the option to purchase the asset at the end of the lease period. A key characteristic of an operating lease is that the economic life of the leased asset is not wholly paid off during the lease period. At the end of the lease period the asset is either sold out or leased out for a further period. 
According to IAS17, it is the leasing company that retains all the risks and rewards of ownership of the asset and under current VAT legislation, operating lease rentals are subject to VAT.

Key variables of an operating lease

  • Repayment frequency (monthly, quarterly, half yearly, seasonally, ...)
  • Initial deposit (percentage dependent upon asset/Lessee risk)
  • Period of lease (dependent upon life of asset)
  • Buy back value (dependent upon estimated market value of asset at the end of lease period)

What do we finance?

  • Cars, motorbikes, trucks, trailers and other vehicles
  • Boats and boathouse equipment
  • IT and printing hardware
  • Agricultural, manufacturing or industrial equipment
  • Earthmoving and land preparation machines
  • Audio visuals - Smart board/interactive whiteboards, plasma screens, multimedia projectors and other AV equipment, recording equipment, audio visuals cabinets, presentation furniture
  • Telecoms - Business telephone systems, VoIP, Video conferencing equipment, Data communications, hubs, routers, voicemail system, cabling
  • Computer hardware - recording equipment, audio visual cabinets, presentation furniture
  • Vending - food vending machines, confectionary/snack vending machines, cold drinks vending machines, hot drinks vending/coffee vending machines
  • Waste machine equipment - static waste compactors, portable waste compactors, balers, screw compactors, shredder etc
  • Medical equipment, textile equipment, engines, air conditioning


Disclaimer

Leasing does not fall under the supervision and regulations of the Bank of Mauritius. As a result Finlease Company Ltd assumes full responsibility for the sale of this product.