LEASE TYPES
Operating lease vs finance lease — what’s the difference?
When you lease equipment through MTL Finance, there are two main structures to choose from. Here’s what each one means in plain English.
Operating LeasePay for Use, Not Ownership
Monthly payments→Return or upgrade
Fixed monthly payments to use the equipment. At the end of the term you return it or upgrade, so payments stay lower.
✓Best For: Schools and organisations that want to upgrade regularly and keep monthly costs low.
Finance LeaseOwn It at the End
Monthly payments→You own it
Fixed monthly payments over the agreed term, and the equipment is yours at the end. Payments are higher because you’re paying off the full value.
✓Best For: Businesses that want to own their equipment and are happy to hold it beyond the lease term.
SIDE-BY-SIDE COMPARISON
| Feature | Operating Lease | Finance Lease |
|---|---|---|
| Monthly payments | Lower | Higher |
| Own the equipment? | No | Yes, at the end of the term |
| Upgrade at end of term? | Yes | Not typically |
| Good for schools? | Yes | Sometimes |
| Good for businesses? | Yes | Yes |
GET A QUOTETell us what equipment you could lease and we’ll get back to you within 24 hours.