What is the interest rate in a lease?
Lease rates are different than interest rates. Lease rates are for determining the base lease payment and can be compared to other lease payments.There is no “interest” in a lease payment. You are paying for the use of the asset over the lease term. The payment varies based on which lease plan you choose, the term of the lease and the cost of the equipment.
Lease Rates or Lease Rate Factors are different from bank interest rates. Since you are leasing and not taking out a bank loan to finance your purchase, there is no interest rate. With leasing, you are paying to rent the equipment and the fixed monthly payment is based on the type of lease, term of the lease, cost of the equipment, time in business, financial repayment ability and your business and personal credit history.
