> ## Documentation Index
> Fetch the complete documentation index at: https://docs.layerfi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Leases

A lease is recorded over a fixed term and, in practice, recognizes a **right-of-use asset**. Create the loan with at least one `ASSET` [proceed](/api-reference/loan/loan#loan-proceed-object) that creates (or links) the right-of-use [asset](/api-reference/asset/asset); the API does not require it, but a lease should have one. If the financing exceeds the asset's value, add a cash `DISBURSEMENT` proceed for the remainder.

## Step 1: Create the lease

Create a loan with `loan_type` set to `LEASE`, `original_principal`, and `loan_term_months`. Include an `ASSET` proceed whose `new_asset` has `asset_type` `RIGHT_OF_USE_ASSET`. To attach an **existing** asset instead, set the proceed's `asset` to `{ "id": "<asset_id>" }` or `{ "external_id": "<asset_external_id>" }`.

```bash Request theme={null}
curl --request POST \
  --url https://sandbox.layerfi.com/v1/businesses/{businessId}/loans \
  --header 'Authorization: Bearer <token>' \
  --header 'Content-Type: application/json' \
  --data '{
  "loan_type": "LEASE",
  "external_id": "lease-001",
  "display_name": "Office equipment lease",
  "origination_date": "2024-01-15",
  "original_principal": 3000000,
  "loan_term_months": 36,
  "proceeds": [
    {
      "loan_proceed_type": "ASSET",
      "amount": 3000000,
      "date": "2024-01-15",
      "asset": {
        "new_asset": {
          "name": "Office equipment (right-of-use)",
          "external_id": "lease-001-rou",
          "asset_type": "RIGHT_OF_USE_ASSET",
          "original_value": 3000000,
          "useful_life_months": 36
        }
      }
    }
  ]
}'
```

## Step 2: Record repayments

Lease payments work exactly like [term loan repayments](/guides/loans/term-loans#step-2-record-repayments): each is a [loan payment](/api-reference/loan/loan#loan-payment-object) split into `PRINCIPAL` and `INTEREST`, and if you have an amortization schedule we recommend pre-creating the installments with `defer_posting` set to `true`.