Does Your Business Need Capital For Growth
A sale-leaseback can be used to free up cash to grow a business through acquisition or to acquire growth capital, additional facilities, technology, and equipment. Many businesses do not have access to as much credit as they need to achieve their growth objectives; many are too close to their borrowing limit to consider expansion or make an acquisition of a competitor.
Sale-leasebacks can be used as an off-balance-sheet financing structure that gives the seller the opportunity to turn a non-earning asset into growth capital. Additionally, a sale-leaseback agreement can often be structured to finance up to 100% of the appraised value, whereas traditional bank financing might be as low as 75% of the appraised value.
The sale-leaseback allows the business owner to more efficiently use their capital and potentially preserve the available bank financing for acquisitions and growth opportunities in the future.