Why some businesses prefer operational leases

Posted on Monday, November 16th, 2009 at 6:50 am    

When businesses choose to lease their assets, they often must decide whether to structure the lease as a capital lease or operational lease.

In most cases, businesses prefer operational lease arrangements because they can keep the asset on their books. Structuring an operational lease, however, can be difficult.

To do so, businesses must ensure the lease arrangement meets a number of requirements. For instance, the lease life cannot be longer than 75 percent of the useful life.

If your business has questions about how to structure a lease arrangement, contact the Iowa business transactions lawyers of LaMarca Law Group, P.C., at (877) 327-2600.


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