Interim Rent

Lessors bill in cycles. Rather than run a separate anniversary for every deal, most start leases on a common date — typically the first day of the month or quarter following acceptance — so that all payments fall on the same day. The equipment, though, is delivered whenever it is delivered, and the lessor has already paid the vendor. Interim rent covers that gap.

How it is calculated

Usually a daily rate derived from the monthly payment, either monthly divided by 30 or divided by the actual days in the month, multiplied by the number of days from acceptance or funding to commencement. Some agreements charge a flat additional payment instead. The method is stated in the lease, in the interim rent or commencement definition, and it is worth finding before signing rather than after the first invoice.

How you meet it

Almost always on the first invoice, as a line nobody expected, or as a deduction from a funding disbursement. It is not a fee in the sense of a charge for a service; it is rent for a period the payment schedule does not show.

Why it is not interest

On a loan or an equipment finance agreement, the equivalent period usually accrues interest that is either collected at funding or capitalised. On a lease it is rent, which matters for how it is treated in your books and for whether it is included in any quoted cost comparison. It generally is not.