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
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.