Business Sale and Leaseback

Business Sale and Leaseback is popular with:

Businesses that wish to have their fleet on a single often all-inclusive funding package or are moving from a mixed funding and management policy.

How Business Sale and Leaseback works:

With sale and leaseback, the existing fleet is valued and purchased from you at an agreed price, which is normally at market valuation. These vehicles are then leased back to you on an agreed mileage and age. This is usually on a non-maintained basis but maintenance can be included if the profile is correct.

Advantages of Business Sale and Leaseback

• The business receives a cash input for the purchase price of the vehicles from the leasing company.
• With sale and leaseback, all disposal risks are removed.
• Accurate budgeting is possible especially if taken with maintenance.
• The administrative burden is removed especially if the maintenance option is selected.

Disadvantages Business Sale and Leaseback

• With sale and leaseback, the asset value of the vehicles is removed from the balance sheet.
• Less flexible than outright ownership because there is an end date to the contract.

Summary

Sale and Leaseback is an effective way to convert your fleet to a risk free managed arrangement, which has the bonus of a cash injection into the business.