What is an equipment lease...really?

An equipment lease is a written agreement by the lesse to pay rent to the finance company (lessor) for a specified amount of time in exchange for use of the equipment. During the life of the lease, the lessee is responsible for maintaining and insuring the equipment. At the end of the lease contract, the lessee has several options. The lessee usually has the option either to complete the purchase of the equipment or return the equipment.

Leases usually include the following terms and conditions: length of lease, timing and amount of payments, and end of lease options.