Sale and Lease Back

What is Sale and Lease Back?

Sale and Lease Back can quickly unlock tied-up funds, giving your business a cash injection.

Are you looking for investment capital for your business? First, we’ll purchase the vehicles you already own at a realistic market value. You then lease the vehicles back from us on a Business Contract Hire or Finance Lease agreement, reaping all the benefits that go with leasing vehicles for a fixed monthly cost.

How it works

Sale and Lease Back means you’re no longer the owner of the assets, so while the fleet risk is reduced, the business has no claim on any reward if the vehicles are sold at the end of the term. If the business is sold, the assets aren’t considered in the sale and have no bearing on the valuation of the business.

Responsibility for residual value risk depends on the type of lease chosen, along with excess mileage and damage charges.

Returned vehicles are inspected per BVRLA Fair Wear & Tear Guidelines; any damage identified will be charged at the cost price estimated to us, not at an inflated rate. In the unlikely event that you are not satisfied with the inspection, an independent appeal process is in place to assist in giving you a second opinion.

There are two options for Sale and Lease Back:

Option 1: Business Contract Hire

After a Business Contract Hire agreement is finished, you’re able to go straight into a new agreement, meaning that your business and drivers can pick from the latest models from any manufacturer.

Business Contract Hire

Option 2: Finance Lease

A typical contract between 24 and 48 months requires an initial rental and agreed mileage limit. There are different options for what happens to the vehicle at the end of the lease.

Finance Lease

The benefits of Sale and Lease Back

Added value

Sale and Lease Back is an excellent way to free up capital from your fleet for reinvestment into future projects, so you can continue growing your business.

Liquidity

Increasing the ratio between your fixed and current assets can give your business the ability to pay off short-term debts as you’re converting capital into cash.

Driver benefits

Company Car Benefit in Kind (BiK) is treated in the same way along with Class 1A National Insurance and VAT for Business Contract Hire and Finance Lease agreements.

Control costs and increase uptime with SMR plans

Keeping up with servicing, replacement tyres, and repairs can bring unexpected costs, but adding a Service Maintenance and Repair (SMR) plan to your monthly fixed payments will help you budget, all while being 100% tax allowable and 100% VAT reclaimable.

All our SMR plans come with Driverline, our 24/7, 365 days a year driver support service to help increase fleet uptime. Our team are available on the phone and via our web app if you need roadside assistance, accident management or maintenance bookings, such as same-day servicing and repairs.

Learn about Driverline

Here to help

Not only can we help release capital with Sale and Lease Back, but we’ll also keep your fleet on the road with our 24/7 Driverline service and dedicated account managers.

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