The Benefits of Sale and Lease Back

Are you asset rich but cash poor?

Sale and Lease Back could be the answer you have been looking for.

This facility is intended for the use of businesses that wish to release equity they have 'locked into' vehicles, plant and equipment and use it for other purposes.

It does not matter if the assets are already financed and subject to a Lease or Hire Purchase agreement since title can still be satisfactorily passed to the new lender.

Are you in any of the following situations?

• A 'phoenix' company rising from the ashes of a liquidation and who have been able to acquire title to some of the old business's assets.
• The owners of plant or equipment needing to fund a balloon or residual payment.
• A business faced with cash flow pressures and needing an injection of funds somewhere other than their bank.
• A business with little spare cash but assets available and wishes to raise a deposit so that it can fund the acquisition of other merchandise.
• A company that needs additional cash because they have the opportunity of obtaining a new large contract.
• A company that wants to clear existing overdraft or factoring facilities.
• A company that wishes to raise cash for unusual purchases e.g. furniture.
• A company that has a fleet of company cars that are mainly unencumbered.

These are just some of the situations whereby releasing funds from your existing fixed assets could improve your company's financial position.

The procedures for this facility are very straightforward.

1. You would provide us with details of the vehicles or equipment that you wish to refinance.
2. The finance company will value the goods and provide an indication of how much they would be prepared to lend and over what period.
3. If the terms are acceptable you would invoice the assets to the finance company who in return will pay you the invoice value and enter into a finance lease agreement with fixed payments over the agreed term.

In summary the Sale and Leaseback facility is a very useful way of releasing tied up capital and is an alternative to taking a loan from your bank and leaving those resources free.

Please contact SKM Asset Finance Ltd to find out more about how Sale and Leaseback can benefit your company.

If you would like details of previous monthly features please contact us.

SKM Asset Finance Ltd is authorised and regulated by the Financial Services Authority.

Finance House, 45 Grange Road, St.Leonards, Ringwood, Hampshire BH24 2QE, UK
Tel (0870) 6039174 Facsimile (0870) 8410030