CLFP Study Guide 2026
Everything you need to pass the CLFP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CLFP Exam Format at a Glance
📚 CLFP Topics to Study (22)
✍️ Sample CLFP Questions & Answers
1. What is a 'flat payment' (level payment) lease structure?
A flat or level payment structure maintains the same payment amount each period, which simplifies lessee budgeting and is the most common payment structure in equipment leasing.
2. What is 'sale-leaseback' and what accounting issues does it raise?
In a sale-leaseback, the seller/lessee monetizes equity in an asset while retaining use; ASC 842 requires analysis of whether control was truly transferred to determine sale recognition.
3. What is a 'covenant lite' (cov-lite) structure in equipment financing?
Cov-lite structures omit traditional financial maintenance covenants, reducing the lessor's ability to catch early warning signs of deteriorating credit but making deals more attractive to borrowers.
4. What does 'assignment without recourse' mean in equipment leasing?
When a lease is assigned without recourse, the assignee takes on all credit risk and cannot look to the original lessor for payment if the lessee defaults.
5. State usury laws in equipment financing primarily regulate:
Usury laws set maximum interest rate limits that lenders can charge on credit transactions; however, many states exempt commercial transactions or allow sophisticated parties to contract around usury limits.
6. Why is continuing education important for maintaining the CLFP designation?
Continuing education is paramount for maintaining the CLFP designation because the equipment leasing and finance industry is dynamic, with constant changes in regulations, market trends, and best practices. By requiring ongoing learning, the CLFP Foundation ensures that its certified professionals remain knowledgeable and competent. This continuous updating of skills and information allows CLFPs to provide the most current and effective advice, upholding the high standards of the designation.