Sale and Leaseback allows companies to raise capital through the sale of the assets currently on its balance sheet. GE Capital Solutions will buy outright purchase vehicles from the customer and then lease them back to them on either a contract hire or contract purchase basis at a fixed monthly rental.
What are the Benefits:
> Release of capital which can be used elsewhere in the business
> Reduced internal administration costs
> Accurate Cash Flow forecasting from fixed monthly payments
> No risk on residual
> No risk on maintenance if taken on a full maintenance contract.
> No hassle with disposal of vehicles at the end of the contract.
> Removal from the balance sheet
Summary
Sale and Leaseback is a way to generate a big cash influx into your business, to remove assets off the balance sheet and to take away the administrative burdens and risks involved with outright purchase