A Sale and Leaseback boosts a customer’s cash flow by giving them a cash injection. Under a Sale and Leaseback Agreement the customer sells their hardware (or fixed IT assets) to a vendor, who then leases them back from the vendor. The benefits for the customer include that the customer:
- frees up cash,
- avoids technology obsolescence,
- pays lower licensing fees,
- gets potential capital and tax advantages,
- regularly refreshes their technology,
- eliminates the costs of disposing of assets.
There are many legal issues (and laws) that need to be considered when drafting this kind of agreement. For example, the National Credit Act is relevant.
Who does it apply to?
It is for vendors wishing to add this to their offering. And any organisation wishing to free up cash flow by selling it’s assets.
Interested?
If you are interested, please complete the form on the right or enquire now. We will contact you to find out more about your requirements and give you a quote.