This simple process involves a business that owns a property selling it to a financial institution and a lease being granted to allow the business to continue to occupy the premises.
Cash unlocked from a sale and leaseback can be used for any purpose, but is often used to fund expansion or inject working capital in to the business.
A sale and leaseback can release ONE HUNDRED percent of a property value, compared to the usual 70-80% that more prudent bank loans offer.
Benefits of a sale and leaseback
> frees up capital, whilst allowing continued use of the property
> lease costs are tax allowable
> properties are often sold at greater than book value
> risk of property ownership is transferred away from the business
> lease can be more flexible than a bank mortgage
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For further information please contact:
enquiries@financialholdings.co.uk
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