Sale and Leaseback
Looking to free up cash in your business?
In this blog, we take a look at a solution that businesses are using to keep cash flow healthy, which is called a sale and leaseback. A sale and leaseback agreement (also known as equipment refinance) is when you finance an asset that you have already paid cash for. It is a simple, fast and effective way to inject cash back into your business.
Here at WestWon, we are doing all we can to help businesses through this difficult period. We have previously written hundreds of sale and leaseback agreements on numerous asset types, so we have the experience necessary to help you. We believe this service could be extremely beneficial for businesses of all sizes.
All you need to know about a sale and leaseback:
- The asset needs to have been purchased within the last 6 months
- Multiple invoices and a range of assets can be included in the same lease
- Original invoice and company bank statement showing the transfer will be required
- Funds are released directly into your company’s bank account
The Benefits of a sale and leaseback
Here we take a look at the advantages of sale and leaseback on equipment:
• A quick and simple way to raise finance
The process is simple and the timescale can be anything from 48 hours to one week before you receive the funds.
• Sensible interest rates
With a sale and leaseback of equipment, we take our security in the asset. This is less risk than offering an unsecured loan, hence the interest rates are normally cheaper.
• Does not use up existing lines of credit
No need for you to speak to your Bank Manager. A sale and leaseback does not affect any invoice discounting / factoring arrangements you already have in place.
• It’s a lease, not a bank funding line
Some companies have banking covenants where they cannot take out other third-party loans. We will lease the equipment back to you, this means it doesn’t fall under any restrictions you might have.
• You still have full use of the asset
You will still have full use of the equipment and will be matching the benefit you derive to the repayment you make each month. On smaller deals (under £500k) we will not look to take a debenture or a second charge.
- VAT and Tax benefits
We pay your invoice in full, including the VAT. Not only this, but all the monthly payments are tax deductible!
Still looking for more information?
We have a dedicated Equipment Refinance page with a range of additional information, click below to see more:
Alternatively, please give us a call and get in touch. Our team would welcome a discussion to provide quotations, advice and additional information on our range of services.
Give us a call on 01494 611 456 or send an email to email@example.com