Glossary of Leasing Terms

Aggregate Lease Payment 
The base monthly lease payment multiplied by the lease term. 

Commercial Lease
A lease where the equipment is used for commercial purposes only. 

Consumer Lease 
A lease where the equipment is used for personal/home use only. 

Fair Market Value
The purchase option that is given to a customer at the end of the lease term. It is the amount that would be agreed upon in a situation where neither party needs to buy or sell. 

Lease  
A contract by which one party conveys equipment to another to use for a specific term for a specific payment amount.

Lease Agreement  
This document serves as the binding contract between the Lessee and Lessor.   The Lessee agrees to all terms and conditions of the Lease and an authorized signer must sign on all indicated areas.

Lease Rate Factor 
This is used to calculate the base monthly payment, multiply the equipment cost by the lease rate factor to calculate the monthly payment. Appropriate taxes will need to be added to get the final monthly lease payment amount.

Lessee  
The Lessee is the commercial or consumer customer looking to acquire equipment through lease. The Lessee must be an authorized signer (President, CEO, VP, etc. or related party to the transaction) to sign the Lease Agreement.

Lessor 
The Lessor agrees to purchase the equipment from the Dealer and arranges the financing for the Lessee. The Lessor (TimePayment) owns the equipment – the Lessee (customer) makes monthly payments to the Lessor (TimePayment) for the equipment’s use.

Personal Guarantor 
The individual responsible for the obligations under the lease.

Term 
The fixed number of months that the Lessee will lease the equipment from the Lessor.