Sales & Rent back consists in selling part or all of your computer or technological equipment to the leasing company and renting it back from them, while keeping it in use. This system is attracting more and more companies because it allows them to quickly improve their cash flow and finance new projects without the need for credit.
Like most companies, you have invested in computers, medical or technological equipment that represents a heavy financial burden, in terms of fixed assets, management costs, maintenance and follow-up.
This often makes it difficult to free up capital for other strategic investments.
Sales & Rent back: for whom, for what?
Sales & Rent back is aimed at all types of companies, regardless of their size and sector of activity. It meets every need and every financing capacity.
All types of equipment are eligible: machinery, computer equipment, office automation, medical equipment.
A real asset for ambitious companies because:
- You get cash back in order to:
> deal with an unforeseen event
> finance new projects directly related to your Core Business (R& D…)
> improve your financial structure and solvency
- You reduce your year-end balance sheet:
At the end of the year, like many CFOs, you are looking to free up budgets to finance new projects directly related to your core business or, quite simply, to consolidate the company’s results in order to pursue its development.
Sales & Rent back: how it works
Legally, Sales & Rent back consists of two types of contracts concluded simultaneously:
- a sales contract for the benefit of the leasing company;
- a customized evolving rental contract, concluded for a period adapted to the type of equipment.
- You invoice the leasing company the agreed amount, corresponding to the original value (if the equipment is less than 6 months old) or the net book value (if the equipment is partially depreciated);
- You forward all original invoices for equipment and materials to be refinanced to the leasing company. (unpledged material and exclusive property of the seller at the time of sale);
- You keep the use of the equipment that is included in an evolving rental contract:
- You pay rents to the leasing company over a predetermined period (24, 36 months…)
- You control your budget: thanks to a single all-inclusive rent (equipment, services, maintenance, management, insurance)
- This simplifies your administrative management. (monitoring of purchases, fleet, insurance by the leasing company)
- You perform your assets: you benefit from equipment that is always up-to-date, renewable as you go along
That’s why Sales & Rent back should interest you.