Sale and lease-back as a model for more liquidity

If you own real estate and/or machinery the use of which is essential for your business and market value of which is higher than the value of any loan or collateralization, you can sell and lease back these assets in agreement with the lending or collateralized credit institution. The difference between the loan or collateralization and the proceeds from the sale then flows to you as liquidity. The financial instrument of “asset-based finance” offers interesting opportunities to sell assets that are necessary for operations and then lease them for further operational use.

Hire purchase may also be an option to preserve your liquidity.


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