A percentage amount that, when multiplied by the original equipment cost, produces the monthly rental payment. This is NOT the same as the interest rate in the lease.
Numerical factor multiplied by total cost of equipment to compute periodic rentals.
a strange looking number (until you become accustomed to working with them), which when multiplied by the cost of a piece of equipment, yields the monthly lease payment
A rate widely used in the leasing industry. Computed by dividing the monthly payment by the cost basis of the lease.
The periodic rental payment rate that your firm makes to us for the use of the leased assets. Once the equipment cost has been determined, the actual monthly lease payment can be computed by multiplying the Lease Rate Factor by the equipment's cost.
The periodic lease or rental payment expressed as a percentage (or decimal equivalent) of equipment cost. Used to calculate payments given the cost of equipment.
The number that results from dividing the monthly lease payment by the equipment cost (e.g. a lease payment of $2383.77 and an equipment cost of $103,000 will yield a lease rate factor of 0.0251 per month (30.12% per year)). The lease rate factor is an aggregate rate structure which is inclusive of all lessor related costs and margins for a given lease transaction, and is not equitable to the interest rate in a transaction. The interest rate inherent in the lease transaction is only one of several factors used to determine a lessee's lease rate factor.
A number expressed as a decimal or percentage of equipment cost which, when multiplied by the equipment cost, yields the lease payment.
Used to calculate monthly payments by multiplying by the amount financed. It is computed using the required interest rate, lease term and end-of-term purchase price.
This is a percentage which when multiplied by the cost provides a periodic rental. It is a helpful number when used by either a sales person or the lessee. In the event the cost of the leased property is either not exactly known or may change, having the lease rate factor allows a quick recalculation of a lease payment when that number becomes known.
