In the past few years you probably managed to finance investments in machinery, transportation and other equipment internally. However, nobody knew about the coronavirus. In view of the resulting reduction of order intake and revenues in hindsight many a man would have preferred to retain liquidities. Still it is not too late!
Financial Lease Back | Sale & Operational Lease Back: one step back in time!
A “Lease Back” construction is a financial solution that allows you to obtain external financing for machinery and equipment you are already using. This is possible under a so called operational sale & lease back or under a financial lease back.
How does it work?
It implies that you obtain external finance for equipment initially purchased within the past 5 years.
- A sale & operational lease back allows you to sell the equipment to a leasing company. You rent the equipment back for a fixed period, with an option to purchase at end of term.
- A financial lease back is similar to a loan with secured by a pledge of the asset. In this case you repay the loan in instalments.
Finally:
The aforementioned lease back solutions are examples to demonstrate how you can improve your liquidities. And there are other solutions. Please do not hesitate to inquire. Via this weblink you can instantly request a lease proposal.
