Equipment Leasing Toolkit
A collection of US-specific resources designed to help parties understand, negotiate, and draft equipment leases.
The demand for capital equipment in business has increased in recent years, so companies should be aware of what makes this type of financing unique from other types of financing.
In a basic equipment lease, the owner of a piece of equipment, the lessor, transfers to another party, the lessee, the possession and right to use the leased equipment during the specified term of the lease in return for the lessee's obligation to make payments of rent.
However, there are also other ways to structure equipment leases. The decisions parties make, including how they construct lease terms, can affect how the lease is classified and treated under different types of law and accounting rules. The interplay of the relevant laws and rules can be confusing for parties who are not familiar with the specifics of equipment leasing.
To help attorneys understand how to structure, negotiate, and draft equipment leases, this toolkit contains, among other things, resources that:
Explain the role of the UCC in equipment leasing.
Review the different types of equipment leases and the differences in construction.
Discuss the issues that parties should address at the outset of an equipment lease transaction and throughout the lease term.