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Operating Lease
Operating lease refers to non-financial lease. The leasing company leases its own property to various clients during different periods of time, who pay the rentals according to the leasing agreement and return the property to the leasing company at the expiration of the lease term. The lease term and rental payment of operating lease are relatively flexible. In operating lease, client is able to use the property without increasing its asset size. The operating lease can not only expand client’s production capacity without any large capital investment, but also avoid the risk of property depreciation.
