How properly structuring a lease contract can affect a business

Posted on Friday, April 23rd, 2010 at 4:39 pm    

When businesses lease assets, they often must draft a contract with a lessor. This contract will detail the numerous lease provisions, such as the amount of lease payments, the date of payments, and any provisions for early termination.

The details of this contract are critical because they determine whether a business treats the lease as an operating or capital lease. The type of lease will determine how the lease payments affect the company’s balance sheet and income statement, two financial statements that are important to creditors and investors.

If your company has legal questions about a lease contract, contact the Des Moines commercial lease lawyers of LaMarca Law Group, P.C., at (877) 327-2600.


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