Equipment Leasing: A to F
In our ever continuing quest to provide information about equipment leasing and answer your questions about copier leasing, below please find some common terms and equipment leasing definitions. This installment covers A-F, tomorrow we'll have G to Z. This is the cliffhanger of leasing glossaries.
Advance Rental Payments
The first payment at the beginning of the lease agreement, typically the first payment or first and last payment amount.
Commitment Deposit
This is similar to a down payment on a house and can be in the 1 to 2 percent range of the total equipment costs. It is usually applied towards the costs of a rental or returned if the lease application is declined. It is sometimes accompanied by a Commitment Letter, which spells out the line of credit in a master lease.
Electronic Funds Transfer (EFT)
This is a wire transfer of money, usually from the Lessor to the equipment vendor for the amount specified in the lease agreement.
Fair Market Value (FMV)
This is what the leased equipment would be worth on the open market at the termination of the lease. The lessee usually has the option to purchased the leased equipment at the end of an agreement at the Fair Market Value price.
Fair Market Renewal Value
Sometimes a company may want to extend a lease. Often the payment structure will be reworked to reflect the fair market value of the equipment at the time the lease expires.
Finance Lease
This lease is also referred to as a conditional sales contract. It's typically non-cancelable although it offers the lessee the ability to acquire title to equipment at an agreed upon rate such as $1 or the fair market value.
Full Payout Lease
The lessee agrees to pay the full cost of equipment plus an agreed upon interest rate over the life of the equipment lease.
If you're considering a copier lease, please consider the Graphic Savings Group.
In our ever continuing quest to provide information about equipment leasing and answer your questions about copier leasing, below please find some common terms and equipment leasing definitions. This installment covers A-F, tomorrow we'll have G to Z. This is the cliffhanger of leasing glossaries.
Advance Rental Payments
The first payment at the beginning of the lease agreement, typically the first payment or first and last payment amount.
Commitment Deposit
This is similar to a down payment on a house and can be in the 1 to 2 percent range of the total equipment costs. It is usually applied towards the costs of a rental or returned if the lease application is declined. It is sometimes accompanied by a Commitment Letter, which spells out the line of credit in a master lease.
Electronic Funds Transfer (EFT)
This is a wire transfer of money, usually from the Lessor to the equipment vendor for the amount specified in the lease agreement.
Fair Market Value (FMV)
This is what the leased equipment would be worth on the open market at the termination of the lease. The lessee usually has the option to purchased the leased equipment at the end of an agreement at the Fair Market Value price.
Fair Market Renewal Value
Sometimes a company may want to extend a lease. Often the payment structure will be reworked to reflect the fair market value of the equipment at the time the lease expires.
Finance Lease
This lease is also referred to as a conditional sales contract. It's typically non-cancelable although it offers the lessee the ability to acquire title to equipment at an agreed upon rate such as $1 or the fair market value.
Full Payout Lease
The lessee agrees to pay the full cost of equipment plus an agreed upon interest rate over the life of the equipment lease.
If you're considering a copier lease, please consider the Graphic Savings Group.
