Sale-leaseback financing is an attractive option for businesses that need to generate working capital. It is a type of financing in which the business sells its asset, such as real estate or equipment, and then leases it back from the purchaser. This allows them to access cash quickly while still having access to their asset. Sale-leaseback financing can be used for a variety of purposes, including working capital needs, debt consolidation, and expansion projects.

How Sale Leaseback Financing Works

Sale-leaseback financing can provide a much-needed source of working capital for businesses. By selling your asset and then leasing it back, you can access cash quickly while still retaining the use of the asset. This type of financing is especially useful in times when businesses need to generate additional cash flow. It can also be used to free up capital for other uses such as expansion projects or debt consolidation.

Capital Without Divesting

Sale-leaseback financing is also advantageous because it does not require businesses to give up any ownership rights. They can retain full control of their asset and simply pay rent to the purchaser to use it. This type of financing can be secured with other assets, making it an attractive option for businesses with limited funds.

Flexible Terms

The terms of sale-leaseback financing are flexible, depending on the needs of the business and the agreement they make with the purchaser. The amount of money required upfront may vary, and businesses can choose to pay a lump sum or installments over time. As well, rental rates may be fixed or variable, depending on the agreement.

Overall, sale-leaseback financing is an attractive option for businesses that need to generate working capital. It provides access to funds quickly while allowing them to retain full control of their asset. By understanding the terms and conditions associated with sale-leaseback financing, businesses can make informed decisions about how best to use this type of financing to meet their needs. BMF Advisors offers comprehensive sale-leaseback financing. Contact our team today to get the funding you need.