Sale and Leaseback / HP Back contract can be a very effective way for your business should you need to increase your working capital while also allowing you to continue using the equipment critical to your business.
Sale and leaseback can be used for equipment and assets your company has recently purchased and paid for – this is usually within the last 3 months timeframe. Simply put the equipment is purchased from you and then leased back to you for the finance period. This is a very effective way to increase working capital into your business.
A sale and leaseback agreement is when a business chooses to sell their equipment to the finance company for the full invoice value paid. The finance comes assumes ownership of the equipment and subsequently they are leased back over an agreed period of time.
