Sale and Leaseback
Sale and Leaseback is the perfect solution if you own plant, machinery or vehicles and want to raise cash by refinancing.
At TeleLease we offer sale and leaseback and sale and hire purchase back on a range of business assets, providing the trade value is in excess of £25000.
Who can we help?
Manufacturing companies that own machine tools including:
- CNC lathes
- Drills
- Press Brakes
- Guillotines
- Workshop Machinery
- Manufacturing Equipment
Construction companies that own:
- JCBs
- Diggers
- Dumpers
- Compactors
- Cranes
- Dozers
- Mixers
Haulage & Transport Companies that own:
- HGVs
- Trucks
- Vans
- Trailers
- Forklift Trucks
- Cranes
- Mixers
- Coaches
- Refuse Collection Lorries
- Fire Engines
- Ambulances
Farmers that own:
- Tractors
- Commercial Vehicles
- Combines
- Grain Carts
- Cultivators
- Mowers
- Wagons
Does it matter what the cash is for?
Businesses of all sizes, from sole traders to large corporations, can enter into a sale and leaseback for a number of very good reasons:
- Expansion and business development
- Deposits and payments for new equipment
- Tax bills
- Paying off debt such as overdraft facilities
- Buying out business partners
- Financing business acquisitions
Is there an age limit to the Plant, Machinery or Vehicles?
As a rule a machine should be less than fifteen years old and a vehicle less than ten.
Accounting for Sale and Leaseback
Sale and leaseback is treated as a refinancing exercise from an accounting perspective in accordance with FRS5.
This means that when the asset is refinanced, it would remain at its original stand in value, regardless of the agreed sale price. Treated as a capital matter, there would be no profit or loss to be written in the P&L account.
Any tax allowances attributable to the new lease would be adjusted to take account of the difference between the stand in value and the sale price.
Further information is available on the HMRC website.
Further help and advice
It’s easy. Call us today for a no obligation discussion and we will tell you quickly and honestly what the chances are of a sale and leaseback on your Plant and Machinery and approximately how much cash you might raise.
