CLFP Study Guide 2026

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.

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.

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.

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.

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.

The Value of Leased Property refers to the fair market value of the asset at the commencement of the lease. This value is determined by the price at which the property could be sold in an arm's length transaction between unrelated parties. For a manufacturer or dealer lessor, it's the normal selling price, while for other lessors, it's typically the cost of the asset.