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Why Sale and Leaseback can provide you with a cash boost

Sales and Leaseback by GCC Business Finance

For business owners there is a constant tension between wanting to fund extra capacity in the business and needing to pay for ongoing operational requirements including salaries and materials.

One powerful way to do this is through sale and leaseback finance. This allows business owners to sell their existing plant and equipment to a finance company, and then to pay regular lease payments back to the company. These lease payments are tax deductible and can help to reduce the tax of the company while still allowing the business owners free ownership of the equipment they need to run the company.

This is a great option for business owners who want to release cash in their business for expansion. There is a large range of items that can be sold and leased back to business owners, including production machinery, vehicles and in some cases computer equipment. The released capital it can either be used for operational expenses or can be used to buy and sell back more equipment. Many business owners also like that leasing is a balance sheet friendly way of obtaining equipment, as it does not appear in gearing ratios.

If you are looking to explore how sale and leaseback finance could help your business, then you should speak to the team at GCC Business Finance.