Sale and Leaseback is a simple financial transaction which allows a person to lease an asset to himself after selling it.
Under the transaction, an asset previously owned by the seller is sold to someone else and is leased back to the first owner for the long term.
The transaction thus allows a person to be able to use the asset and not own it.
One usually makes a leaseback transaction for high value fixed assets such as real estate focus on warehousing and industrial properties and goods like aeroplanes and trains.
Sale and leaseback shortly called as a leaseback.
The main advantages of sale and leaseback are that it enables businesses to release cash from existing items of value such as equipment, plant and machinery.
Depending on the terms, releasing cash this way may be cheaper than financing the new purchase or paying off short-term debts and liabilities to continue trading with a bank loan. Another advantage of sale and leaseback.
With sale and leaseback, the customer raises an invoice to the finance company for the sale of the asset that is to be refinanced.
The finance company purchases the asset releasing finance to the customer and then leases it back to the business on a traditional finance lease agreement.
Advice and support during each stage of the process, from strategy and planning to preparing the full technical support, legal and financial file.
Lease, suited to the tenant's organisational goals, with a clear allocation of maintenance costs for the tenant or future owner (service level agreement).
Purchasing/sales documents (building documentation or marketing materials, draft and definitive agreements, due diligence process etc).
A fully substantiated business case for owner-occupier or investor, including the financial, tax and legal consequences on the one hand and building, technical and spatial aspects on the other