How Purchase Leaseback Options Can Help Organizations Generate Cash

In a difficult economic environment when budgets are tight, one way an organization or company can create cash is by selling a fleet and leasing it back through a Purchase Leaseback option.

Similar to home equity, where an owner taps into the equity of a home, a company has an asset of value, sells it, then leases it back from the buyer. The buyer owns the asset (the fleet), and the seller pays the buyer for its use. When a fleet is company-owned and the lease agreement is carefully structured, a sale/leaseback can also remove the assets (and corresponding debt) from the balance sheet. A Purchase Leaseback option allows those companies that either own or lease from another source, the ability to sell their fleet to a fleet leasing company at fair market value.

Another use for a Purchase Leaseback arrangement is to convert a fleet from one lessor to another rather than through attrition. A purchase leaseback arrangement can help reduce the difficulties of dealing with two lessors and end an existing lessor arrangement.

Some of the realized benefits of a Purchase Leaseback program are:

  • Immediate cash flow
  • Vehicle will remain in your fleet
  • Choice of term and program for new lease
  • Improved balance sheet

At Capital Lease Group, we work with numerous human services, public agencies, and the private sector. We have years of experience working within these specialized fields. As a result, we are familiar with what the needs and concerns are as they apply to their vehicles, from trucks to heavy equipment to sedans to wheelchair vans to activity buses. And we work with each organization to determine the most appropriate type of purchase leaseback arrangements.

There are some considerations for organization that are thinking about a purchase leaseback option, including administrative and sales tax costs. However, in most situations, we take care of licensing and title services to alleviate hassles, reduce overall costs, and make the transition easier for our clients.

Check out the potential benefits of a Purchase Leaseback option and let Capital Lease Group demonstrate how you will be able to simplify your company’s fleet management program.

Capital Lease Group is a leading fleet leasing provider in Massachusetts and beyond. We are committed to structuring a lease that will be designed to fit your business rather than having your business conform to the confines of a standard lease. We will invest the time to understand each customer’s individual needs while offering a full range of leasing services and products that will complement each customer’s goals. Our experienced staff of knowledgeable experts in sales, administration, and service will help you feel comfortable so that your main focus will be on your company’s vision while we handle all of your fleet requirements.