Sale Leaseback Financing: An alternate source of funding for your business operations

Sale Leaseback Financing: An alternate source of funding for your business operations

Sale Leaseback Financing offers a compelling solution for businesses looking to unlock capital from their balance sheet assets and convert it into a source of non-dilutive funding.

A sale leaseback involves selling unencumbered assets off the balance sheet and subsequently entering into a lease agreement, allowing the business to remain in operational control of the asset and secure uninterrupted use. One of the main benefits of Sale Leaseback Funding is its ability to free up equity tied in balance sheet assets and use the cash for investing in activities with more productive returns than the cost of the lease.

These funds can be crucial for expansion plans, reducing more expensive debt, or making strategic investments, all of which are vital for driving business growth. Furthermore, when transforming asset ownership into a lease arrangement, businesses can retain control over essential assets while potentially gaining tax advantages through deductible lease payments.

Lease repayments are typically cheaper than borrowing unsecured debt to fund your business operations and expansions. Before you take out your next unsecured term loan or line of credit, take a look at your balance sheet and see if you can put it to more productive work through a Sale Leaseback.

If you have any questions about Sale Leasebacks or want to know if assets on your balance sheet are eligible, please get in touch with the One Yard team today.