How is a Master Lease structured and what are the benefits?
Options uses a master lease program to simplify the approval process
and establish a long-term leasing relationship. Unlike individual lease
agreements a master lease allows the customer and CPU Options to agree
on fundamental lease terms and apply those terms to many lease
schedules. The general areas covered by the master lease include
virtually everything except those items specific to an individual
lease. Those items are covered by the lease schedule and include
payment terms, length of the lease and detailed equipment lists.
The benefits to using a master lease program include:
- One-time review of lease terms with legal department.
- Faster turnaround from Finance Department regarding the terms of the lease.
- Limits approval to capital budget and limits roadblocks.
- Paperwork and signatures do not hold up shipment of equipment.
- Standard terms simplify managing lease schedules.