Sale & lease back
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Sale & lease back

Raising capital is a challenging issue, especially for small and medium-sized enterprises. One possibility to raise capital at short notice is the sale and lease-back procedure. As a sale-and-rent-back, you can also make use of this form of financing at Lendis. Here you can find out what is behind it and how you can profit from it.

Definition: What does sale and leaseback mean?

Sale & Lease Back is an asset-based financing model for raising liquidity in which movable fixed assets are sold to a lessor and leased back for immediate use.
Definition Sale & Lease Back

Mobile assets can be production machinery, vehicles or IT equipment and even office furniture. The lessor buys the assets at a determined value. The customer then receives rights to use the assets and pays a continuous leasing instalment in return. The ownership rights are transferred to the lessor, while the possession rights remain with the customer.

Financing office equipment via sales and lease back - procedure

What are the advantages of Sale & Lease Back?

Sale & Lease Back has several advantages over other classic forms of financing.

Fast liquidity

By selling the existing assets, capital that was previously tied up in the company can be released in the short term. Because the assets are leased back immediately, the sale has no negative impact on the company's production.

Financing independent of banks

Sale & lease back financing is completely independent of banks and creditworthiness. Consequently, it has no influence on existing credit lines with credit institutions, which can be advantageous for later financing.

Streamlining the balance sheet

Fixed assets are sold within the framework of the sale and lease back procedure. This reduces the asset side of the balance sheet. Since liabilities are reduced at the same time, the liabilities side is also shortened. This conversion of CapEx into OpEx (More on CapEx vs. OpEx) leads to an improved balance sheet ratio. If the inflowing funds are also used to settle liabilities, the equity ratio can also be strengthened.

Tax deductibility

The conversion of CapEx into OpEx also has tax implications. Capital Expenditures are depreciated pro rata over the useful life. Operational Expenditures, on the other hand, can be fully deducted for tax purposes in the period in which they are incurred, which is usually advantageous.

Comparison: Sale & Lease Back vs. Sale & Rent Back

As a lessor of office equipment and technology, Lendis offers Sale & rent back, a principle analogous to Sale & lease back. However, instead of leasing the equipment, it is rented. This has legal implications above all.

From a number of 10 or more devices, there is the option of selling technology such as laptops and smartphones to Lendis and then renting them back on a monthly basis.

How does Sale & Rent Back work with Lendis?

To take advantage of the Sale & rent back with Lendis, only 3 steps are necessary:

  1. You create a list with all relevant end devices and at least the item number and the date of acquisition. 
  2. Based on the information, Lendis evaluates the equipment and prepares a non-binding offer including purchase price and monthly rental price to take over the equipment.
  3. After acceptance of the offer, we will transfer the purchase amount to your account within 7 days.

The advantages of Sale & rent back with Lendis

  • Quick decision
  • Fair valuation
  • Support during the rental period
  • Clear management of the devices
  • Personal contact person

Quick decision

If a list of all available terminal equipment including item numbers and date of acquisition has been provided, Lendis will prepare a non-binding purchase offer within 48 hours without an on-site inspection. If the offer is accepted, the transaction of the purchase amount will be transferred to the specified account within 7 days after signing the purchase and rental contracts.

Fair valuation

Lendis prepares an offer without an on-site inspection using the information provided and based on the current purchase prices. Accordingly, the more information available on the equipment, such as details on the condition of the equipment, pictures, etc., the more helpful it is.

Support during the rental period

Lendis also takes care of quick repairs during the rental period. We replace defective equipment immediately so that your employees can be productive quickly.

Clear management of the devices

As a Lendis customer, you receive access to the account area of our platform. When you start renting, we add all the devices rented with us to your account. Devices can be assigned to individual employees there. This way you always have an overview of all available devices.

Personal contact person

During the entire rental period, a personal contact person is available to you for questions about products, services or support. You can reach your colleagues by phone at any time. Alternatively, you can use the Lendis platform as a direct line for specific support enquiries.

Do you need additional capital at short notice? We would be happy to advise you on how Sale & Rent Back from Lendis can support you.