Operating lease and finance lease are two common types of leases used in business. An operating lease is a short-term lease agreement where the lessor retains ownership of the asset and the lessee pays for the use of the asset for a fixed period. This type of lease is often used for equipment or machinery that needs to be regularly upgraded. On the other hand, a finance lease is a long-term lease agreement where the lessee takes on the risks and rewards of ownership of the asset. This type of lease is often used for high-value assets such as vehicles or property. Understanding the differences between operating lease vs finance lease can help businesses make informed decisions about their leasing options.