What is Sale and Lease-back?

Sale and Lease-back allows companies to raise capital through the sale of assets currently on its balance sheet. Alphabet will purchase vehicles outright from the customer and then lease them back to them on an operational lease or contract purchase basis at a fixed monthly rental.

What are the Benefits?

• Release of capital which can be used elsewhere in the business
• Reduced internal administration costs
• Accurate cash flow forecasting with fixed monthly payments
• No maintenance issues to handle if a full maintenance contract is taken
• support when it comes to the disposal of vehicles at the end of the contract
• Removal from the balance sheet

Summary

Sale and Lease-back is a way to generate a substantial cash influx into your business, to remove assets off the balance sheet and to take away the administrative burdens and risks involved with outright purchase.