Leaseback of real estate is one of the alternative forms of raising investment capital. It consists in selling real estate and concluding a lease agreement for a planned period. With this option you can get up to several million zlotys while still using your sold property.
Leaseback has become one of the more useful financing tools
The last few years are a real breakthrough on financial markets. Leaseback has become one of the more useful financing tools for any entrepreneurship, both large and small. This is an excellent way not only to raise investment capital, but also funds that will be allocated to current business operations. It is also a good way to release capital frozen in a specific part of the company’s assets. The transaction also allows you to eliminate financial charges, purchase equipment or another investment without having to take out a loan or a loan. Leasing acts as a loan (credit) because working capital is sold through the sale of fixed assets. They can help you achieve faster income.
The principle of property leaseback is simple.
An entrepreneur interested in this form of transaction sells the real estate to the leasing company. At the same time, he reserves that the right to continue using them, under the conditions contained in the leasing contract, will belong to him. From the moment the contract is concluded, the landlord (buyer) becomes the owner of the property, but in practice the same company still uses the building. It is often the case that it is not even necessary to leave the premises in the property concerned by the transaction. The subject of leaseback can be virtually any asset subject to depreciation, and the entrepreneur pays a specific rent during the period provided for in the contract.
Leaseback is the most profitable for those entities which have a high value of fixed assets,
Leaseback is the most profitable but suffer from a shortage of working capital, or want to raise capital for further investments in a short time. This form of transaction can be concluded in many sectors, for example in industry, transport, logistics, services or health care. In the sale and leaseback of real estate, a lot depends on the quality and risk assessment of the rental contract. No positive response from the bank regarding the granting of the loan does not mean that you will not be able to take advantage of leaseback. The financial benefits of such a transaction are primarily to raise investment or working capital in exchange for the property.
Considering the above, when deciding on this form of raising funds, it is worth carefully analyzing the offer, choosing the one whose solutions best meet the expectations of the entrepreneur.