Interim rent is a partial payment that covers the time period between the day we verify you’ve received your equipment and the first payment due date. It’s noted in the first paragraph of your agreement, which reads “We may charge you a partial payment to cover the time period between delivery and the first payment due date (interim rent).”
After we confirm that the equipment has been delivered and receive all required documents, your equipment supplier is paid. We then set up the contract on our billing system and an invoice is sent to you for the first payment due. However, your first payment due covers the following full 30-day period. The period between when we pay your vendor and when the first lease payment is due is not covered by your first payment.
To cover the time period between payment to your vendor and your first payment, we also include interim rent on your first invoice. This payment is called Interim Rent. When applicable by law, taxes may be applied to interim rent. Interim is normally about 80% of the monthly payment.
Let’s say you received your equipment on August 7. PEAC Solutions bills a month in advance; therefore, when your first invoice says your first payment is due 09/05, your first invoice covers 09/05 through 10/05. So your interim rent would cover 08/07 through 09/05.