Sale and leaseback of equipment is a financial option available to businesses that is something of a hidden secret!
It provides businesses with the opportunity to raise funds against business assets that they have purchased and inject funds back into the business.
However, the timing of the loan application and drawn down is crucial.
At times, if the business has funds available and urgently needs equipment to meet its operational needs, the owners will choose to pay cash.
However, on reflection they may decide, it would have been better to finance the equipment and retain the funds within the business.
This is when, providing certain conditions are met, sale and leaseback of the equipment may be an option.