Sertant Capital – Boost Your Business’ Cashflow with a Sale and Leaseback Arrangement
A sale and lease back arrangement/agreement is a convenient financial solution for entrepreneurs to obtain funds against their commercial property. Under this arrangement, a reliable lending company will purchase the property they currently own for a reasonable price. Then the corporate lender will lease the property back to the entrepreneurs for a specific time. In return, they have to make regular rental payments to the lender every month. As a result, the entrepreneurs get the funds they urgently need and still use the property for their commercial activities. In the process, they can improve their businesses’ cash flow position.
Sertant Capital is a popular equipment financing company that conducts its business activities from Newport Beach, California. It has a wealth of experience in the above market spanning 25 years. This finance company specializes in providing its corporate customers with diverse vendor funding solutions to suit their specific needs. These include sale and leaseback arrangements, refinancing options, Off balance sheet financing schemes, progress payments, capital, and TRAC leases. Over the years, it has been able to fund commercial transactions to the extent of 5 billion dollars. It has set the benchmark within the industry for others to follow.
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Specialists associated with Sertant Capital explain a sale and leaseback arrangement is a cheaper alternative to various lending schemes commercial banks offer entrepreneurs. It allows them to free up cash funds, which they tie up against their commercial property. Entrepreneurs can then use the resources to finance lucrative ventures they undertake when conducting their commercial activities. The advantages of a sale and leaseback arrangement over other traditional lending solutions for entrepreneurs are as follows:
- The arrangement allows entrepreneurs to continue using the commercial property for their activities without incurring the risks of owning it,
- Entrepreneurs are in a position to reinvest the cash funds they receive from the sale and leaseback arrangement into their commercial activities, and
- They can show rental payments to be an operating expense in their accounts and claim tax deductions on it.
They further state entrepreneurs should consider the following factors before agreeing to a sale and leaseback arrangement:
- The leasing company offering them this financial solution should have a good reputation in the market,
- They should scrutinize the conditions of the sale and leaseback arrangement especially the length of time they can use the property, and
- Entrepreneurs should consult tax experts to evaluate the financial implications of sale and leaseback arrangement.
Experts working with Sertant Capital conclude by saying entering into a sale and leaseback arrangement can be beneficial for entrepreneurs in the long-run. They can continue to use the commercial property they lease the lending company for their business activities. In the process, they do not incur the risks of actually owning it. They can reinvest the funds from this financial solution to improve their businesses’ cash flow position. Moreover, they can show the rental payments to the lending company as an operating expense and claim tax deductions. When entering into a sale and leaseback arrangement, entrepreneurs should work with a reliable lending company always.