Accessibility Menu

What Is an Operating Lease?

By Matthew DiLalloUpdated Aug 12, 2025 at 12:24 PM

Key Points

  • Operating leases let businesses use assets like real estate or machinery without buying them.
  • Leasing avoids large upfront purchases and the risk of asset devaluation.
  • At lease end, assets must be returned, preventing any potential value gain by lessees.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.