Day: July 31, 2020

PRODUCT HIGHLIGHT: THE WIN-WIN SITUATION OF A SALE-LEASEBACK

Few deals create a win-win situation as effectively as sale-leasebacks do.

In a leaseback, both the buyer and the seller benefit immensely from the agreement, because each can protect their business interests and grow their respective enterprises. Therefore, it comes as no surprise that a sale-leaseback is a popular equipment financing solution among our network of business owners and entrepreneurs. In fact, many European retail businesses say they will turn to sale-leasebacks to bounce back in 2021.

Regents Capital Corporation will walk you through our sale-leaseback process, so you’re empowered to boost your business in the future too!

Sale-Leasebacks by Regents Capital

A sale-leaseback is a financial transaction involving a sale of an asset to be leased back to the seller.

First, a business seeks a fresh inflow of cash from the sale of its asset, usually a piece of equipment. An entity — in this case, Regents Capital — buys the equipment and becomes the new owner. Then, the entity leases it back to the business that sold it.

By entering a sale-leaseback arrangement, the business raises capital and, at the same time, keeps using the asset it needs to continue operations. It also keeps the company’s balance sheets healthy, compared to other ways of raising capital.

For instance, if the business decides to take out a loan instead of a leaseback, the loan will have to be repaid and will be listed as a debt in the balance sheet. On the other hand, a leaseback transaction can raise the assets in the form of cash. And instead of listing debt, the business can count rent payments as business expenses.

The new owners also benefit from the ownership of a cash-flowing asset, backed by a long-term lease. Additionally, this investment doesn’t require much management.

100% Reimbursement for Your Equipment

Regents Capital leverages a collective 100 years of financing experience to help you free up capital while still maintaining the use of your industry equipment. With a sale-leaseback, you have the option to invest your newly acquired capital toward expansion.

Our firm reimburses recently purchased equipment worth $50,000 to $10,000,000! If you have industrial equipment that exceeds $10,000,000, our asset portfolio managers can review the transaction with you.

We also reimburse equipment purchased within the last 12 months (there may be exceptions for older equipment with high residual values).

You can leaseback almost all types of equipment, regardless of what industry you’re in.

  • Technological devices, like computers, data centers, and telecommunications devices
  • Vehicles, like trucks, trailers, and aircraft
  • Manufacturing equipment, such as waste processing machines, automated distribution systems, and printing presses
  • Medical equipment, such as those in hospitals and testing centers
  • Food and beverage equipment, such as industrial kitchen appliances and food processing lines

Streamlined Transactions

You will have a dedicated project team comprising an account manager, documentation manager, and credit team. We will review your credit application along with relevant documents in a clear and seamless manner. Once approved, we finalize all documentation and release the funding quickly.

A sale-leaseback gives you the option to expand your business without having to give up your current operations. It has been proven by enterprises in virtually every industry and continues to be leveraged by successful businesses around the world.

Let Regents Capital fund your growth. Get in touch with us today.

BUSINESS FUNDING SOLUTIONS FROM REGENTS CAPITAL CORPORATION

Having the right tools and equipment is necessary to ensure smooth business operations, but financing equipment can be costly. When it comes to equipment purchases, business owners can use their operating cash flow to pay for equipment upfront. But if you prefer to preserve your cash, consider an equipment financing program.

Equipment financing covers any items your business needs to operate — from furniture and vehicles to large machinery. Companies must take advantage of these funding programs as they enable you to purchase equipment at low-interest rates.

Here at Regents Capital Corporation, our equipment leasing programs support you with the following business funding solutions:

Capital Leases

Capital leases are, by nature, rental contracts for the temporary, exclusive use of an asset. But for accounting purposes, it has all the characteristics of asset ownership, mimicking traditional loan purchases. It also offers complete financing, allowing you to allocate your money efficiently for other projects with higher ROI.

If you are after long-term equipment ownership, go for a capital lease that offers purchase options. With a capital lease, payments are fixed, and then you can buy the equipment at a bargain price according to its depreciated value.

Equipment Line of Credit

Our equipment line of credit goes far beyond offering the benefits of our lease products; it also enables you to space equipment acquisitions over time. You can commit up to 12 months in advance with periodic takedowns (which we match to your equipment’s expected utilization time). Equipment line of credit services also allows you to combine multiple invoices into one advanced invoice.

True Tax Leases

True Tax Leases are ideal for business owners on tight budgets. This financial solution has lower monthly payments, lower up-front costs, and multiple tax advantages. A True Tax Lease can finance up to 100 percent of your equipment cost, which includes ‘soft costs’ like installation, delivery, transportation, and training.

True Tax Leases have lower payments compared to Non-Tax Leases, which preserve your cash flow. You can use this funding solution to deduct qualifying lease payments as well.

TRAC Leases

Terminal rental adjustment clause leases (TRAC) combine the advantages of leasing while retaining the benefits of ownership. Once your TRAC lease ends, you can:

  • Continue the rental of the equipment at reduced rates and pay based on the residual value amount
  • Buy the equipment at a pre-determined residual rate
  • Return the equipment

EFA

Equipment Finance Agreements (EFA) is a loan where borrowers are considered titleholders while the lender, Regents Capital Corporation, is the lienholder of the financed equipment. EFAs are more advantageous than traditional bank loans because:

  • It is secured only by the equipment being leased or financed and NOT your current or future assets
  • Most bank loans have constrictive rules that keep you from borrowing future funds when needed
  • Many bank loans do not have fixed rates and are tied to market rates

Working Capital Loans

These loans can pay for your daily expenses, such as debt payments, rent, and payroll. Regents Capital Corporation offers both secured and unsecured working capital loans. With the latter option, how you use the money is up to you. The approval of the loan does not depend on the conditions of the loan’s uses.

Get the funding for your business’s equipment with a trusted financing firm. Talk to a Regents financial expert today to learn more about our equipment leasing and finance.