Cash Reimbursement

Raise Capital at the End of the Fiscal Year While Maintaining Use of Your Assets

As organizations approach their fiscal year end, it is an excellent opportunity to analyze your financial position. A turbulent economic environment ensures that your cash position is an important financial consideration. By demonstrating a strong cash position, it is possible to:

  • Maintain debt ratings
  • Avoid bank covenant violations
  • Improve liquidity rates
  • Consolidate capital acquisitions onto one lease

For these reasons, it is common to execute a sale/leaseback transaction in the final month of your fiscal year or at the end of a quarter.

 

What is a Sale-And-Leaseback?

In an equipment sale-and-leaseback, you sell your equipment to a lessor, and the lessor reimburses your company 100% of the original purchase price of your equipment. You continue the use of your equipment and use the cash for:

  • Growth initiatives
  • Strategic projects
  • Debt reduction
  • Strengthen cash position on balance sheet

Your CapEx budget can be replenished with a sale-and-leaseback.

 

 

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