Assured Lease Corporation Inc., Canada’s Premier underwriter and originator of A, B and C credit leases, is pleased to announce new access to capital for Canadian Businesses.
In today’s highly turbulent credit marketplace, businesses are looking for new creative capital solutions. As the banks and traditional financing are “drying up”, Assured Lease is always on the look out for creative financing solutions for your business. Limited access to working capital can often get in the way of ambitious growth plans.
To address this challenge, Assured Lease is working with business owners about taking advantage of an innovative form of financing known as “sale leaseback” to unlock the hidden value in their existing assets and provide them with immediate capital.
A sale leaseback turns your equipment into immediate cash, making capital available for other investments, upgrades, working capital, paying off other debt, and any purpose you can imagine.
With sale leaseback you actually sell your equipment for fair market value ( not book value ) and then lease it back over a fixed payment period. At the end of the lease term, you can choose to extend the lease, buy the equipment back for a fixed purchase price or upgrade your equipment.
In addition to providing ready access to working capital, sale leaseback transactions are popular for a number of other reasons:
1. Continued Use- you retain all use of the equipment and you continue using it to generate revenue
2. Potential income tax benefits– Like most leases, a sale leaseback offers tax advantages compared to traditional back financing. Over the course of the lease you may be able to write off 100% of the payment.
3. No extra collateral needed– Unlike traditional back financing, typically no collateral is needed beyond the equipment itself. Equipment valuations are relatively fast and simple.
4. Tailored payments- Like all leases, payments can be tailored to meet your cash flow, including a fixed step or seasonal payment schedules.
5. Preserve lines of credit- Your lease payments won’t interfere with bank credit lines, allowing you to preserve these funds for other business priorities.
Sale leaseback items that will be required:
1. Invoice showing the equipment was sold to your company or you personally
2. Proof of payment for the equipment: cancelled cheque/Visa statement, etc.