It can be difficult to raise money, particularly for small and medium-sized businesses. The process of Sale and leaseback is one way to generate capital quickly. You can also use this type of funding at Landis as a sale-and-rent-back. You can learn more about it and how to benefit from it here.
Wikipedia’s definition of Sale and leaseback
Examples of mobile assets are production equipment, vehicles, IT equipment, and even workplace furniture. At a predetermined price, the lessor purchases the goods. After that, the customer gets usage rights to the assets and exchanges those rights for ongoing leasing payments.
What benefits do sales and leasebacks offer?
Compared to other traditional types of financing, Sale, and leaseback have several benefits.
Speedy funding
By selling the current assets, the business can temporarily free up money locked up in the business.
Independent financing from institutions
Sale and leaseback funding is unaffected by banks or creditworthiness in any way. As a result, it has no impact on current credit lines with financial organizations, which may be advantageous for financing in the future.
Balance statement simplification
As a result, the balance sheet’s equity side decreases. The liability side is also shortened because obligations are decreased concurrently. A better balance sheet ratio results from this change from CapEx to OpEx (more on CapEx vs. OpEx).
IRS deductions
Tax consequences follow from the transformation of CapEx into OpEx. Capital Expenditures are depreciated pro rata over the usable life.
Sale & Lease Back vs. Sale & Hire Back comparison
Landis, a lessor of technology and workplace supplies, provides Sale and rent back, a concept similar to Sale and lease back. However, the equipment is hired rather than leased. Above all else, this has legal ramifications.
Selling technology like laptops and cellphones to Commercial Lending USA and renting them back every month is available for groups of 10 or more devices.
How do Sale & Rent Return and Commercial Lending USA integrate?
Only 3 actions are required to benefit from the Sale & rent back with Commercial Lending USA:
You make an inventory of all pertinent endpoints that include, at the very least, the item number and the date of purchase.
Landis evaluates the equipment based on the data and creates a non-binding offer that includes the equipment’s purchase price and monthly leasing cost.
We will transfer the purchase price to your account within seven days of accepting the deal.
- The benefits of using Commercial Lending USA for Selling & Rent Back
- Rapid choice
- Good assessment
- Assistance throughout the rental time
- Management of the equipment clearly
- Quick decision Personal communication
Let’s say Landis gets a list of all the available terminal equipment, the item numbers, and the dates they were bought. In that case, it will make a purchase offer that is not binding and doesn’t require a visit to the property within 48 hours.
Good assessment
Landis makes an offer based on the information he has and the current purchase prices. He doesn’t go look at the property himself. As a result, the more details there are about the equipment, such as descriptions of its state, photos, etc., the more useful it is.
Assistance Throughout The Rental Time
Additionally, Landis handles any urgent repairs made during the rental time. We swiftly replace damaged tools so that your staff can resume productivity.
Management of The Equipment Clearly
You can access our platform’s account section as a Commercial Lending USA customer. We add all the equipment you’ve leased from us to your account as soon as you start renting. Always have a clear picture of all the devices that are accessible.
Personal Representative
During the rental, you have a direct point of contact for questions about goods, services, or help. Your coworkers are always reachable by phone. Alternatively, you can contact particular support inquiries directly through the Commercial Lending USA platform.
