RECEIVE A CASH INJECTION
The Sale & Leaseback product is designed for an organisation that has an existing inventory of equipment. Under the Sale & Leaseback solution, you sell your existing equipment to Alleasing at its written down value, or current market value (whichever is higher) and then rent it back for the remainder of its useful life.
The Benefits of Sale & Leaseback:
- Continue to use the equipment you have always used,
- Receive a cash injection,
- Remove company assets from the balance sheet,
- Invest your money in appreciating assets and not have it tied up in depreciating equipment,
- Consolidate all your assets into a single rental schedule,
- Implement a structured plan of equipment renewal through the exchange plan,
- Gain greater financial control through a fixed and regular quarterly rental payment,
- Transfer the risks and costs of ownership and disposal to Alleasing.
Flexibility
You can use the Sale & Leaseback solution with most business assets. You can then have the added flexibility to add new equipment or change the rental term or the amount you pay whenever you want.
How Sale & Leaseback can work for you
Your Sale & Leaseback solution is tailored to meet your unique requirements. You may consolidate all of your assets or only a percentage of them into one contract, whichever is administratively efficient for you. You can also combine the sale of your existing assets with the purchase of new equipment from the vendor of your choice under one lease schedule.
A typical Sale & Leaseback example:
You have an existing asset base that has a written down book value of $500,000 with most of this equipment being paid off through a variety of bank loans and other traditional methods of financing. Payment amounts and payment times may vary between each method of repayment.
Alleasing will buy all of this equipment at its current book value ($500,000) helping you to avoid expense write-downs and capital gains taxes. You then lease this equipment from Alleasing, paying only a fixed quarterly rental amount. From the sale, you now have $500,000 in cash to pay down debt, reinvest in the business, or acquire new investments.