Sales and Leaseback Services
Our sales and leaseback services offer businesses a strategic avenue to unlock capital tied up in owned assets, such as real estate or equipment. By monetizing these assets through a sale and entering into a lease agreement, businesses can access immediate funds while retaining operational control and use of the assets.
Key Benefits of our Sales and Leaseback Services:
Liquidity Injection: Sales and leaseback transactions provide businesses with an immediate infusion of capital, allowing them to address cash flow needs, finance growth initiatives, or repay debt obligations. This liquidity injection can be critical for businesses seeking to seize growth opportunities or weather financial challenges.
Asset Optimization: By monetizing owned assets through a sale and leaseback arrangement, businesses can optimize their capital structure and redeploy capital to areas of higher strategic priority. This flexibility enables businesses to allocate resources more efficiently and enhance overall operational performance.
Operational Flexibility: Sales and leaseback agreements allow businesses to retain operational control and use of the assets following the sale. This flexibility enables businesses to continue utilizing the assets in their day-to-day operations while benefiting from the proceeds of the sale.
Off-Balance Sheet Financing: Sales and leaseback transactions can be structured to provide off-balance sheet financing, enabling businesses to improve their financial ratios and enhance their creditworthiness. This can be advantageous for businesses seeking to access additional financing or negotiate favourable terms with lenders.
Tax Efficiency: Depending on the jurisdiction and tax regulations, sales and leaseback transactions may offer potential tax benefits for businesses. By structuring the transaction appropriately, businesses may be able to achieve tax efficiency and optimize their overall tax position.
Risk Mitigation: Sales and leaseback arrangements can help businesses mitigate risks associated with asset ownership, such as depreciation, obsolescence, or fluctuations in asset values. By transferring ownership to a third party and entering into a lease agreement, businesses can offload these risks and focus on their core operations.
Capital Recycling: Sales and leaseback transactions enable businesses to unlock capital from existing assets without selling them outright. This capital recycling strategy allows businesses to monetize underutilized assets and reinvest the proceeds into growth opportunities or higher-yielding investments.