What Is Sale & Leaseback?

Sale & Leaseback is a great way of releasing capital into your business, if your company owns vehicles then you can receive an influx of cash and still retain them to use.

What is Sale & Leaseback?

After receiving the cash you no longer own the vehicles but instead pay to lease them with fixed monthly rentals based on expert valuations. You essentially enter in to a Contract Hire agreement for a given period and then hand the vehicles back leaving you free to either enter a new Lease agreement or purchase new vehicles.

Key Points of Sale & Leaseback

  • Releases capital to invest into your business
  • Retain the use of the vehicles at the same time as removing them as assets
  • There is an option to buy back the vehicles at the end of the lease
  • VAT registered companies may be able to claim back 50% of VAT on the rentals

Things to Consider with Sale & Leaseback

  • You no longer own the vehicles when the leaseback begins
  • The vehicles no longer show on the Company balance sheet