Quite simply, Sale and Leaseback is a process where a company raises cash by selling wholly owned assets and leases them back whilst retaining their use.
Sale and Leaseback is a commonplace transaction no matter what size your business. The main requirement is that the assets involved are capital assets with a reasonable useful lifespan remaining.
The proceeds from a Sale and Leaseback can then be used to support the working capital requirements of your business.
In general the benefits of Sale & Leaseback are regarded as:
- Instant cash injection for your business
- Worthwhile tax savings
- Easier budgeting and strategic planning
- Reduced administration costs