If you`re in the market for financing options to acquire new equipment, vehicles or other assets, you may want to consider a master lease agreement with RBC. This type of financing arrangement can offer many benefits for businesses looking to expand their operations while managing cash flow effectively.
What Is an RBC Master Lease Agreement?
An RBC master lease agreement is a type of contract that allows a business to lease equipment or other assets for a set period of time. RBC acts as the lessor, providing the financing for the lease, while the business is the lessee, responsible for making payments according to the contract`s terms.
The master lease agreement allows the business to acquire the equipment or assets it needs without having to pay the full cost upfront. Instead, the business makes regular payments to RBC over the lease term, which can last for several years depending on the agreement.
Benefits of an RBC Master Lease Agreement
One of the main benefits of a master lease agreement is that it provides flexibility for the lessee. The business can choose the equipment or assets it wants to lease, and RBC will provide the financing. This allows the business to acquire the assets it needs while preserving cash flow for other business operations.
Another benefit of a master lease agreement is that it can be structured to include maintenance and repair costs. This means that the business doesn`t have to worry about unexpected expenses for repairs or maintenance, as these costs can be included in the regular lease payments.
Additionally, an RBC master lease agreement can offer tax benefits for the business. Lease payments may be deductible as business expenses, reducing the overall tax liability for the company.
Overall, an RBC master lease agreement can provide a cost-effective financing solution for businesses that need equipment or assets to expand their operations. With flexible terms and the ability to include maintenance and repair costs, this type of financing can help businesses manage their cash flow effectively while acquiring the tools they need to succeed.