When it comes to funding options for businesses, asset finance
Business financing simplified
Sale and Leaseback
in a nutshell
Sale and leaseback or just “leaseback” is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. With a leaseback the particulars of the arrangement, such as the lease payments and lease duration, are made immediately after the disposal of the asset. Customers may be responsible for any maintenance or repairs due on their asset depending on their contract. Companies use sale and leasebacks when they look to raise cash against unencumbered assets to invest in any various other purposes but they still need the asset itself to operate their business. Sale and leaseback is a suitable facility suitable for asset-heavy, cash-poor businesses that need additional capital for business purposes.
This transaction allows the leaser to use the asset but not own it. You can also sell the asset for a cash influx and then it can be leased back to you.