The most common form of trailer leasing is Operational Lease. Under this form the lease company of the legal owner of the trailer assuming all associated risks. As title to the object is held by the lease company, the trailer is not regarded as borrowed capital as the customer merely has the right of use to the trailer. In practice this means that you can use borrowed capital for your core business. In other words, the liquidity in your business is not affected by your trailer fleet. You only pay the trailer’s direct costs! Operational risks such as residual value are for account of the lease company. Operational Lease is basically a form of long term trailer rental. Operational Lease assures you of a constant kilometer price. With trailer fleet management performed by the lease company, the lowest possible kilometer cost price can be achieved.
The advantages of Operational Lease over Financial Lease: