An operating lease typically shorter than capital lease, is a rental arrangement whereby you can acquire the use of equipment for a fraction of its useful life with SLCL retaining the risks of ownership at the end of the lease term. Therefore, unlike traditional leases you can either renew the lease or return the equipment to SLCL at the end of lease without any residual obligation. As the initial cost of the item is not substantially recouped by SLCL during the initial lease term, the same asset can be leased out to other customers during its useful life. Businesses constantly strive to achieve and maintain a healthy financial position. Since Operating Lease are off balance sheet mode of financing, therefore, is ideal for improving key financial ratios such as ROA and Debt Equity ratio. Since operating lease is not required to be capitalized, it lowers the asset base of your company and Debt Equity consequently return on asset is increased. There are eight good reasons to finance equipment through operating lease.
			1	Full Service Lease Facilities.
			2	Improved Financial Ratios.
			3	Alleviation of Technology Risk.
			4	Conservation of Credit Lines.
			5	Simplified Accounting Treatment.
			6	Low Capital Budget Requirement.
			7	Flexible Terms and Structure.
			8	Aggressive Credit Approval.