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Capital Lease Agreement
Free capital lease agreement template — a long-term equipment lease structured so the lessee effectively finances ownership over time.
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This free capital lease agreement covers 1. Lease of Equipment, 2. Payments, 3. Bargain Purchase Option, 4. Risk and Responsibility, 5. Ownership for Accounting/Tax Purposes with 9 clearly marked [placeholder] fields to fill in — built for founders, freelancers, and small business owners formalizing a business decision or agreement without paying a lawyer to draft it from scratch. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Capital Lease Agreement
Lessor: [Name] · Lessee: [Name] · Equipment: [Description] · Date: [Date]
1. Lease of Equipment
Lessor leases the equipment described above to Lessee for a term of [Duration], which covers substantially all of the equipment's useful economic life.
2. Payments
Monthly payment: [Amount], due on the [Day] of each month, for [Number] payments totaling [Total Amount].
3. Bargain Purchase Option
At the end of the lease term, Lessee may purchase the equipment for [$1 / a nominal amount / a price significantly below expected fair market value], reflecting the capital (finance) nature of this lease.
4. Risk and Responsibility
Lessee bears the risk of loss, is responsible for maintenance, insurance, and taxes on the equipment during the lease term, consistent with the equipment being treated as Lessee's asset for accounting purposes.
5. Ownership for Accounting/Tax Purposes
The parties intend this Agreement to be classified as a capital (finance) lease under applicable accounting standards (e.g. ASC 842 in the US), meaning Lessee will record the equipment as an asset and the lease obligation as a liability on its balance sheet.
6. Default
If Lessee defaults on payments, Lessor may [repossess the equipment / accelerate all remaining payments], per the remedies described in this Agreement.
7. End of Term
At the end of the term, assuming all payments are made, Lessee [automatically takes title / exercises the bargain purchase option described in Section 3].
Lessor: ______________________ Date: ____________ Lessee: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal or accounting advice. Whether a lease is classified as "capital" (finance) or "operating" has real balance sheet and tax consequences — the bargain purchase option, lease term relative to useful life, and present value of payments are the specific factors accounting standards use to make that classification, so confirm the intended treatment with an accountant.*
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What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Lease of Equipment, 2. Payments, 3. Bargain Purchase Option, 4. Risk and Responsibility, 5. Ownership for Accounting/Tax Purposes, 6. Default, …
- 9 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Early-stage businesses
Getting the basics documented before things get more complex.
FAQ
Is this capital lease agreement template really free?
Yes, completely free — view, edit, and download this capital lease agreement as a PDF without creating an account.
What does this capital lease agreement cover?
This business template includes 1. Lease of Equipment, 2. Payments, 3. Bargain Purchase Option, 4. Risk and Responsibility. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. Templates like this cover the common ground most businesses need, but they can't anticipate your specific deal terms, jurisdiction, or industry rules. Treat it as a first draft to build from, and get a business attorney's eyes on it before signing anything that matters.
Can I edit the wording?
Yes. All 9 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free business and related document templates in the docstoc library at /document-templates/.
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