Equipment Lease Agreement

An equipment lease agreement is a great way to get the equipment you need without having to buy it outright. The lessor, who owns the equipment, allows you to use it for a specified period of time in exchange for periodic payments. You can lease vehicles, factory machines, or any other type of equipment.

How do I write an equipment lease agreement?

Understand the basics of equipment lease agreements:

• Before you start renting equipment, please answer the following questions. This may seem like a lot, but without answering these questions about your business, you won't be able to make an informed decision about leasing or buying equipment.
• If you choose to lease equipment for your business rather than pre-purchase, please sign a lease agreement with the equipment owner or seller. Similar to a rental lease, the equipment owner drafts a contract specifying how long you will lease the equipment and how much you will pay each month.
• Lease-to-Own Agreement: A lease-to-own agreement is a great way to gain ownership of equipment when the company doesn't have the money to buy the equipment up front. Businesses make scheduled payments for a period of time prior to taking full ownership.

How do you account for leased equipment?

Leasing equipment is a great way to get the items you need without having to pay the full price upfront. When you lease equipment, you'll need to make minimum lease payments and record depreciation expense for the equipment. This will help keep your business running smoothly and efficiently.

Download this sample equipment lease agreement template for free from our website. Make some changes in the document available in Microsoft Word format. If you like this letter, please give us a big thumbs up. Your valuable feedback matters a lot to us. Head towards our website for some useful content.