What is operating property financing?

Operating property financing, its lease is similar to installment lease, generally because the cash flow of enterprises is tight and it is impossible to purchase the assets directly. The lease is long. At the end of the lease period, the lessee usually buys the asset, or the asset has no actual value. In this case, the risk and value equivalent to the assets are completely transferred to the lessee, so it should be recognized as the assets of the enterprise.

However, the lease term of operating lease is short, and the lessor will continue to lease the recovered assets to other units or for personal use after the lease ends, so it cannot be recognized as amortization and depreciation of enterprise assets.