No-Payment Lease

This lease structure offers a payment moratorium at lease inception. Ordinarily, the nopayment period is limited to two or three months but may sometimes extend as long as six months. Businesses benefit from no-payment leases when new equipment requires a break-in, operator training, or set-up phase. This way, the lessee is not required to remit lease payments during the equipment’s initial start-up stage. No-Payment leases also help when existing equipment will be replaced shortly, but some leasing or financing payments remain. Lessees can install new equipment earlier with a No-Payment period while avoiding making payments for both items. Installing new equipment while an older unit is still in place permits more effortless changeover and transfer to newer technology.