s a general rule, when a lease is structured in such a way that a lessee can purchase the leased equipment for a predetermined amount that is inferior to the fair market value of the equipment, the lessee should capitalize and treat this transaction as a loan. When a lease allows a lessee to return the equipment at end of term without any additional obligation, then the lease rentals can be expensed. The lessee may have the option to purchase the equipment as long as the price is a fair representation of the market value of the equipment. The Equipment G.F.L. can offer the appropriate lease for any type of equipment required in the operation of a business. Whether it is for rolling stock, materials handling equipment, production, office equipment or computers and the telecom equipment, G.F.L. will suggest the most appropriate leasing structure in accordance to the needs of the lessee. Lease Terms From 24 to 66 months, the lease term is usually a refection of the useful life of the equipment and the lessee's cash flow requirement. Rental Repayment The lease rent is a fixed amount and will not vary over the term of the lease based on cost of fund variations. The rental amounts can pre-determined as to match productivity of the equipment and the lessees cash flow requirements. What does a lease cost? Leasing is generally known as a competitive financing alternative to a loan. In addition to not being subject to increases in the money market as lease rentals are fixed at the inception and for the full term of the lease, lessees are not subject to fee structures that are common to other financing alternatives. In fact, lessees do not incur credit fees, set-up fees and annual or administrative fees of any kind. Lease rental amounts are determined in accordance to leasing factors. The main components used in defining a rental amount are the cost and the type of equipment, the lessee's credit rating and the structure of the lease itself.