What is sale and leaseback?
Asset based finance solutions excel at releasing working capital against the value of a company’s assets to overcome cash flow problems. Whilst invoice finance solutions release cash against debtors, sale and leaseback unlocks capital tied up in commercial property, often the most valuable asset a business owns.
There are several advantages of sale and leaseback, which involves a business selling its commercial property to a funder whilst agreeing to lease it back for a pre-determined time period in return for fixed monthly rental payments.
Advantages of sale and leaseback:
- Sale and leaseback allows your business to operate from the same premises whilst avoiding the risks associated with owning property.
- This form of asset based finance frees up working capital, which can be invested into growing your business.
- It also carries potential tax benefits as the leasing costs are offset as an operating expense.
- The fixed monthly rental payments under sale and leaseback make cash flow management a simpler task.
Is sale and leaseback right for my business?
With a range of asset based finance and business property finance solutions available, speaking to a specialist commercial finance broker could identify which facility would best suit your business’ funding requirements.
With more than 13 years’ experience in the commercial finance and business property finance markets, Hilton-Baird Financial Solutions can introduce your business to the right funding facility.
Call Neil Galer on 023 8070 6636 for more information about sale and leaseback, or any other business finance solutions. Alternatively, get an instant asset based finance quote.
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