Sale and leaseback Companies – WestWon can help!
Sale and leaseback is a term that leasing companies use. Many of our customers will call the same thing, equipment refinancing. Sale and leaseback is a popular way for companies to raise finance on assets they already own. At WestWon, we have written hundreds of equipment sale and leaseback leasing agreements on numerous asset types.
If you are looking for sale and leaseback companies, please enquire online now and WestWon can help you! For more information on sale and leaseback agreements, please read below.
Let’s look at a couple of examples of where it is used:
Leasing capital equipment that comes from abroad
Leasing companies will often not like paying a supplier who is based outside of the UK. It’s not just exchange rate issues or the fact that invoices are paid in Euros or USD. Often its more to do with merchantable quality issues and what happens if the equipment breaks or the supplier goes out of business.
If you – the customer – buys the equipment directly and pays your supplier, you will then have full legal title in the equipment. You then act as the supplier selling the equipment to us the leasing company. Hence, if there were any issues with quality or reliability, you stop paying and cannot blame a third-party supplier.
Paying deposits to your supplier
Even on small lease transactions from £10,000 plus, often suppliers will request a deposit. With some situations, it is easier for you to pay your supplier in full for the equipment then immediately undertake a sale and leaseback with us.
Raising capital by a sale and leaseback
Why go to a bank and take out a personally guaranteed loan, maybe with a debenture over your company, paying a big arrangement fee, when it is a lot easier to do a sale and leaseback on an assert you already own.
Sale and HP back
This is another option for you and is often done where the equipment has a good resale value. The process and idea is the same as a sale and leaseback, however with Hire Purchase agreements, at the end of the lease term you will own the equipment.
Can you do a sale and leaseback on equipment already on a lease?
It is really important that you do not double finance an asset. This is illegal as in effect two or more banks are lending money against the security on one asset.
If your asset is already on lease, we would have to correctly terminate the existing agreement. This means settling any money outstanding to the other leasing company and making sure we/you have full legal title. With vehicles, you would also need to check the HPI register to ensure the car / vehicle has no finance registered against it.
List of leasing companies that offer sales and leaseback
We have a list of UK leasing companies that do offer sale and leaseback of equipment and assets. For further information, please call Jeremy Hall on 01494 611 456 or email Jeremy.hall@westwon.co.uk.
