what is an operating lease 
an operating lease is a contract that allows for an asset s use but does not convey ownership rights of the asset these leases allow businesses to use the asset without incurring the high expenses involved in purchasing it the business that leases the asset is called the lessee and the business that loans it under a lease is called the lessor the responsibilities of each party in the agreement are spelled out in the lease contract and documents but generally the lessee must maintain the asset to ensure it remains in operational condition less any normal wear and tear 