The Most Common Questions About Leasing …
And The Answers

Real Lease is here to answer all your questions. For your benefit, we've compiled a list of the most commonly asked questions... and the answers.

What is an equipment lease?

Essentially, a lease is a rental agreement in which one party (the lessor) maintains ownership of an asset and another party (the lessee) uses it in its business activities.

What is a "net lease"?

A net lease means that the lessee pays for the equipment's maintenance, utilities or taxes related to usage (sales tax, property tax, etc.).

What kind of equipment is leased?

Just about any kind of equipment can be leased from computers, to telecommunications equipment and industrial machinery. Leasing organizations are now estimated to finance some $250 billion of equipment per year in the United States alone.

How long is a lease term?

Typically assets which have a long useful life (such as railcars, barges and the like) have relatively long lease terms, often ten years or more. At the other end of the scale, assets, which tend to become quickly obsolete (such as computers) usually, have lease terms of two to five years. Some lease terms are driven by how long the lessee wants to use the assets without moving on to newer equipment or technologies. Other lease terms are based on accounting issues which limit the length of certain leases to no longer than 75% of the equipment's useful life.

Is a lease always for a fixed term?

Most leases do not have rights of cancellation, so you are stuck with the equipment for the duration unless you can work something out with the lessor. Some leases allow for "assignment", where you can pass along the usage to another lessee (called a sub-lessee) with the permission of the lessor, but you may or may not still be "on the hook" if that sub-lessee were to quit making payments.

Can used equipment be financed?

Yes! Used and refurbished equipment can be financed just like new equipment as long as the term of the financing is not beyond the useful life of the equipment

Can I include my service or maintenance contract in the financing?

Yes! We are able to include your maintenance or service contract within the finance contract without charging you interest.

Can I include money for future equipment purchases in today’s lease?

Yes! We understand it may be easier to allocate funds for future purchases today rather than going to your board for each new purchase. The key is in the planning.