An Operating Lease is a low-cost per utilization payment facility similar to a long-term rental. The lease term is significantly less than the useful life of the asset being leased. At the end of lease term, the client or lessee has flexibility to 1) return asset to the lessor, 2) purchase the asset for a negotiated fair market value from the lessor or 3) extend the lease for another agreed lease term, with a reduced rent payment based upon the then fair market value of the asset. The lessee expenses the rental payments of an operating lessee and the asset does not appear on the lessee financial statements – accordingly, operating leases are also described as "off balance sheet financing".
First Leasing Company provides operating Lease structures to its client lessees for a select group of asset classes, typically top-tier manufacturer equipment.