Lease data
The following fields and pop-up menus are used to specify the general lease data.
The rate of interest is usually stated as an annual interest rate, referred to as the nominal rate of interest.
The compounding frequency is the number of times a year that interest is added to the principal.
FinLease provides for simple interest or compound interest with annual, semiannual, quarterly, bimonthly, monthly, semimonthly, biweekly, weekly, daily (360 or 365 days in a year) and continuous compounding.
Usually you would leave this option set to monthly.
The equipment cost or lease amount is used to enter the initial balance of the lease.
Points are a percentage of equipment cost which is added to the initial balance of the lease. Please note that this differs from what is usual in a loan context.
Note: points are not included in the Amortization schedule when they equal zero.
The lease date is the date when the lease is originated. Points and advance payments always occur on this date.
FinLease provides for annual, semiannual, quarterly, bimonthly, monthly, semimonthly, biweekly and weekly payments. Usually you would leave this option set to monthly.
To specify the payment frequency, select it from the payment frequency pop-up menu.
The first payment field lets you set the date on which the first payment is due. It has no effect on advance payments, which by nature are made on lease date.
To specify payment programs in which the first payment occurs on lease date or is deferred for 1, 2 or 3 months, select the appropriate item from the arrow menu.
The total number of payments is the total of all advance, step up, normal, seasonal and step down payments. It does not include the residual value payment.
Related topics
| General options |
| Payment options |
| End of lease options |
| Fields and ranges |