Your Lease Rate Explained
You’ll get a customized lease rate schedule that includes options for term, lease type, and transaction size. Below is a general guide of what influences a lease rate.
Standard terms on a lease agreement range from 12 - 60 months. As the term increases, the rate will typically decrease.
(+) Shorter terms have higher rates.
(-) Longer terms have lower rates.
The lease rate goes down as the size of the transaction increases.
(+) Smaller transactions have higher rates.
(-) Larger transactions have lower rates.
The lease type influences the rate. FMV agreements have a residual - or amount due at the end - that lowers the lease rate.
(+) $1 Buyout, EFA, and SFA have higher rates.
(-) Fair Market Value have lower rates.
Loyal customers get optimal lease rates. Conversely, it can be expensive for our organization to set up a technology company who finances one customer per year.
(+) Fewer transactions per year leads to higher rates.
(-) More transactions per year leads to lower rates.