Sale and lease back is is a simple yet effective way for a business to unlock the capital held in its existing assets, whilst retaining the use of them.
The lender buys the equipment from you and either sells it back to you (hire purchase) or hires it back to you (finance lease) over a pre-determined period.
To be eligible for sale and HP/lease back the asset must be wholly owned by your business and meet certain age and condition criteria.
Sale and HP/lease back can be used against many types of business assets including:
- Agricultural machinery
- Construction equipment
- Manufacturing machinery
- HGVs, buses and coaches
What are the benefits of sale and leaseback?
- Release capital – free up capital that is tied up in your unencumbered assets.
- Cash injection – cash can be used to develop other areas of the business.
- No downtime – your business continues to use the equipment meaning neither downtime required nor retraining on new equipment.
- Secured funding – you may raise capital where traditional loans may not be obtainable.
- Tax savings – lease costs can be offset against profits.
To find out how we can help with your sale and HP/lease back requirements please call us today.