The Sale Leaseback: Fast Cash for Any Business

As a savvy business owner, you may or may not be aware of what a sale-leaseback is, but the sale-leaseback type of lease is one of the most underused tools available in the financial marketplace. , which offers significant advantages today. Owner of the business.

Here’s the book definition of a sale and leaseback: an arrangement whereby a business sells fixed assets, currently owned, for cash to a lessor and leases them back to the lessor. Convert a fixed asset to cash. The sale price may be appraised value or book value, acceptable to the lessor. The book value may be better for the lessee to eliminate taxes.
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Simply put, this type of lease will get your cash from an asset, like a truck, that is free and of course. There is no bond against the truck and you do not owe any money on the truck. The bank will be able to appraise the truck and tell you how much it is currently worth and offer you an amount of cash in exchange for the monthly lease payments to the bank for the cash you received. You can then purchase the vehicle at the end of the lease for as little as $1.00 and own the vehicle again.

This is a tremendous financial tool to be able to use in times of cash shortage. You can release your team’s cash at any time when the need arises. Having the ability to create another source of capital for oneself is priceless.

Here are the main things to remember about sale and leaseback:

– The Bank will pay in cash for its own property.
– Can be used as a safety net for a business if cash flow drops unexpectedly.
– With the same treatment as a lease, the bank takes ownership of the equipment and the customer now as a monthly payment.
– Similar to refinancing a home, but the equity in the equipment must be 100%.

You will sell your asset free and clear and lease it back simultaneously.

– Construction
– Manufacturing
– Industrial production
-Yellow Iron
– Tippers and Trailers
– Agricultural and livestock
– Heavy equipment
– Trucks in general

Typically, you would have to qualify as you would for a regular lease, but sale-leaseback gives you a huge advantage in using your equipment to provide you with quick cash in an instant. The proceeds from this type of lease can be used for working capital, debt restructuring, purchase of additional equipment, and settlement of lawsuits and other liens.

This type of lease also qualifies for all the different types of Flexible Payment Options that allow you to structure your payments to fit your needs. Such as, Deferred Payments that give you time to install and start using your equipment so that it begins to generate income before you start making payments and Seasonal Payments that will give you a break in the amounts of your payments, if your business is of season or have slow time of year.

The value of your equipment and technology comes from using it, not owning it. When purchasing assets, the best rule to remember is to own assets that appreciate and lease assets that depreciate. You can buy your leased asset at the end of the lease for as little as $1.00!

In conclusion, keep this type of capital acquisition in mind. You never know when sale and leaseback could be used to provide Quick Cash for your business.