Sale-leaseback solutions to meet working capital needs

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At Commercial Lending USA, we offer sale-leaseback deals for any ship in any location. In a sale-leaseback deal, the owner of an asset sells it and then rents it back from the buyer immediately. It lets the operator free up capital while keeping the business going. The lease has a set length of time and a set payment rate, which gives financial flexibility without slowing down operations. Sale-leaseback agreements can be useful for a commercial lending usa business because they let it escape the restrictive covenants of traditional financing methods.

In the following ways, using sale-leasebacks can be a clever move that greatly benefits operators:

Transform property into money.

A sale-leaseback enables a seller to access otherwise unavailable capital due to asset ownership, allowing for more efficient use of the funds for things like meeting operational needs, paying owners dividends, investigating new opportunities, and addressing liquidity issues.

Substitute for conventional funding

A sale-leaseback is a potent substitute for traditional funding strategies. With this type of transaction, operators can get 100% loan-to-value fixed-rate financing without agreeing to the strict loan covenants that come with traditional financing.

Increases credit status and the balance sheet

A sale-leaseback can help an operator’s return on capital by eliminating an inefficient capital asset from their balance sheet. Because the vessel is now leased rather than possessed, it goes “off-balance sheet,” lowering the company’s loan-to-value ratio. An operator can subsequently quickly raise their credit metrics as a consequence. If an operator has trouble meeting current bank covenants, these deals can be a quick and easy way to meet those covenants.

No time off or education is necessary.

With a sale-leaseback, the operator can save time and money by using the newly leased asset immediately. Additionally, the crew doesn’t need to be retrained on a new piece of equipment because they are already acquainted with it, saving the operator even more money.

Übertragung of the remaining risk

Operators take care of the long-term risks involved in commercial lending usa asset ownership and upkeep. Once a sale-leaseback deal is completed, Commercial Lending USA assumes risks like depreciation and obsolescence.

Tax advantages

In a sale-leaseback deal, the seller can often save money on taxes when assets are turned into contingent assets. Since the lease payments are business expenditures, they are now deductible from income. Please note that nothing in this essay should be construed as tax advice. Before making any tax decisions based on a sale-leaseback deal, business owners should always speak with their CPA or tax attorney.


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