Sale and Leaseback

A  Sale and Leaseback deal is considered as a quick and useful method of enhancing business capital. This pact is ideal for businesses who would like to retain their prevailing equipment or assets for future use and at the same time acquire the money required to boost the working capital within a short period of time. This facility is applicable to almost all kinds of equipments that have a resale market value.

You can take advantage of the sale and leaseback arrangement to fulfill your business monetary needs by acquiring money immediately provided you possess equipments as assets. Linetrust Offshore will provide you all the necessary details and extend help to the maximum extent. You can get cash in hand for the equipment you have sold and can also get lease of the equipment you need for your business, instantaneously. This way you can unlock your assets and free up your capital amount which might otherwise just show up on your balance sheet.

Pros of a Sale and Leaseback deal

Apart from acquiring the much required cash to improve the business, you can continue to enjoy the usage of the equipment or asset as well.  When the lease deal is a capital lease, then the business need not have to reflect the value of the asset in its balance sheet.  This financial arrangement can prove to be a much affordable option than seeking loan from a bank to buy the asset because lease payments are generally lower when compared to the loan interest rates.

A typical Sale and Leaseback scenario

Visualize a business that has a property in hand but is finding it hard to free the cash tied to it for meeting out its current financial burdens or short-term debts. The condition can worsen if the business has a poor credit. Under such circumstances loan from a bank can prove very pricey as they can charge a hefty amount towards interests. But the business could always opt to sell anyone of its property to a reliable buyer and come to an agreement to lease the same property for a particular time period, say 3 to 5 year’s time and make use of the property.

Here the Sale and Leaseback option is the far best alternative than a loan. In this manner the business not only get great relief from its cash crunch but also uses the obtained cash to pay-off its liabilities and debts to keep its operations going. In addition to this, the business will also continue to use its asset till the end of the lease period.

Our team at Linetrust Offshore will be glad to clarify all your queries pertaining to Sale and Leaseback facility and guide you through the whole process, step-by-step. Come to us and we will take care of the rest.