What is the interest rate of the lease?
There is no interest rate as such with leasing. There is instead a monthly payment just like the payment you would make to lease an apartment or your restaurant space. The lease payment is for your use of the equipment. The amount of the lease will depend on the cost of the equipment you purchase, the length of time you choose to lease the equipment, the purchase option you choose at the end of the lease, and the financial history of you and/or your company. What if I change my mind? Can I cancel or pay off the lease? The leasing company has made a long term commitment to purchase the equipment for your use. So, you cannot cancel the lease. However, in most circumstances you can pay the lease off early but this could be a disadvantage to you. You should ask your tax accountant to help you understand the tax consequences of this decision. Are there tax benefits associated with leasing? You may be able to deduct the monthly lease expense as a business expense on your tax return. The advi
