What is the interest rate on a lease?
A lease is not a simple interest loan, and therefore does not have an interest rate as we normally think it would. The amounts charged on an equipment lease are calculated using monthly rental rates. Rental rates are based on various factors that include but are not limited to the term of lease, lessees credit history, type of equipment being leased, etc. The stronger your business, the lower your rate should be. LIA Techs great rates are very competitive. Obtain a free quote at no obligation and youll be surprised at how affordable leasing can be for your business.
The amounts charged on an equipment lease are calculated using monthly “rental rates”, rather than by using a compound interest rate method that is normally associated with conventional loans. Rental rates are based on the lessor’s ability to effectively manage risk and costs associated with equipment ownership, while passing on the economic savings to the lessee.
The amounts charged on an equipment lease are calculated using monthly “payment factors”, rather than by using the compound interest rate method that is normally associated with bank loans. Payment factors are based on the term of the lease, the lessee’s credit history (both business and personal), and the type of equipment being leased. The stronger and more established your business, the lower your payment should be.
