Fixed vs. Floating Rate

Fixed vs. Floating Rate

Rate Options
In order to deliver the best leasing service option for our clients, Union Leasing provides both floating and fixed rate options for open-end leases.

Fixed Rate
Fixed rates are based on the Prime Rate established at the inception of the lease and remain fixed throughout the term. As with the floating rate, both the Level and Step payment options are available. The Level payment is based on an amortization table that establishes the depreciation and interest charge for that month. Each month your principal reduction increases while your interest charge decreases, resulting in fixed level payment.

Floating Rate
Union Leasing currently employs two indices: Libor and Prime. The interest portion of your rate adjusts to reflect any change in the base rate. Libor rate adjusts monthly; the Prime adjusts for the next billing cycle after every rate change.

Get in touch with our experts for help structuring the best lease to accommodate your financial goals.