For businesses looking to preserve capital, maintain balance sheet strength, and gain flexibility over fixed asset ownership, an Operating Lease is a smart and strategic solution. It’s particularly popular among large corporates, civil contractors, mining companies, and government-funded projects looking for compliant, tax-efficient equipment procurement.
What is an Operating Lease?
An Operating Lease is a commercial equipment rental agreement where the asset remains owned by the lender or lessor. You lease the equipment for a fixed term -usually 24 to 60 months - and return it at the end of the lease, without the obligation to purchase.
Because you don’t technically own the asset, both the asset and the liability stay off your balance sheet, freeing up borrowing capacity and improving financial ratios. Lease payments are treated as an operating expense (OPEX), making them fully tax-deductible.
Why Choose an Operating Lease?
- Fully off-balance-sheet rental structure
- No ownership or residual risk at the end of term
- 100% tax-deductible payments
- Suits larger-scale procurement or fleet upgrades
- Complies with internal CAPEX or budget restrictions
- Flexible end-of-term options: upgrade, return or extend
Operating Leases are commonly used to finance trucks, cranes, access equipment, telehandlers, earthmoving machinery, and other high-value plant used in long-term projects or fleet rollouts.
Who Is It For?
- Civil contractors and infrastructure firms
- Mining and resource sector operators
- Government departments and Tier 1 builders
- Large companies with strict financial controls
- Businesses that want to avoid equipment depreciation or resale risk
Operating Leases are ideal when you need to run equipment, not own it - especially when equipment is project-specific or likely to be turned over regularly.
How It Works
- Select the equipment your business needs
- We fund it under a fixed-term Operating Lease
- You make monthly lease payments over 2–5 years
- At the end of the lease, you can:
- Return the equipment with no further obligation
- Extend the lease on a reduced rate
- Upgrade to newer equipment under a new lease
There is no balloon or buyout built into the agreement, and the asset is not depreciated on your books—making it an attractive model for CFOs and asset managers.
Why Mako?
We work closely with contractors, project managers and procurement teams to structure Operating Lease facilities that meet both operational needs and financial policies. From single-machine leases to fleet-wide solutions, our team ensures your business gets the gear it needs - without unnecessary balance sheet impact.
Want to explore an Operating Lease solution?
Speak with our team today and we’ll tailor a funding strategy that aligns with your project, structure, and budget.
