Sale and leaseback helps a business receive working capital secured by an asset that is already owned or used by the company. The core idea is simple: machinery, transport or a car on the balance sheet can become a source of financing for current needs.
This instrument may be useful when a business needs money for goods, fuel, salaries, taxes, preparation for the season or launching a new project. At the same time, the client may continue using the asset according to the agreement terms.
What sale and leaseback is
This solution is suitable for businesses that need working capital. It is relevant in situations when funds are needed without stopping the use of an existing asset. Instead of paying the full amount immediately, the client receives existing machinery, transport or a car and makes payments according to the agreed schedule.
• replenishing working capital
• preparing for a season
• covering operational expenses
• launching a new project
• keeping machinery in operation
Who may benefit from sale and leaseback
GUSTO LEASING provides financial leasing across Ukraine. The standard advance payment starts from 20% of the leased asset value. An advance payment from 0% may be considered if additional collateral is provided.
The financing term may be up to 48 months. Payments under the agreement for the client are made in UAH. A preliminary decision may be made in up to 2 hours after the required information is received.
What assets may be considered
GUSTO LEASING may consider both new and used existing machinery, transport or cars. For used assets, technical condition, document completeness, liquidity, year of manufacture, mileage or operating hours and compliance with financing requirements are important.
The maximum age of the selected car, transport or machinery may be up to 15 years. The client may independently choose a seller or supplier in Ukraine, and the company checks the documents and transaction structure before signing.
What purposes the funds may be used for
Different payment schedules may be applied: annuity, intensive, seasonal or individual. The right option depends on the advance payment, term, expected income from using the existing asset, seasonality and current expenses.
If needed, a manager can prepare several calculations so the client can compare scenarios before signing. This is especially useful when the asset will be used in business and should not create excessive pressure on working capital.
Main financing terms
Before completing the transaction, it is worth clarifying insurance, registration, operating rules, the possibility of use by third parties and any cross-border use restrictions. Early repayment is possible after the minimum leasing period of 12 months; the detailed procedure is fixed in the agreement.
How the asset is assessed
For sale and leaseback, the asset condition, documents, year of manufacture, mileage or operating hours, market value and liquidity are important. The maximum age of machinery or transport that may be considered is up to 15 years.
Unlike a classic loan, sale and leaseback is tied to a specific asset. Therefore, not only the financial profile of the client is assessed, but also whether the asset is suitable for financing and further use.
Before signing, it is important to clarify ownership documents, valuation logic, insurance, use of the asset, payment schedule, early repayment rules and the consequences of non-payment under the agreement.
Before submitting an application, prepare who will arrange leasing, what object is planned for purchase, its estimated value, whether it is new or used, seller information, desired advance payment, financing term and comfortable monthly payment.
Sale and leaseback should be viewed as a financing tool, not as a simple sale of machinery. The client receives funds but continues using the asset under the agreement, so the payment schedule and operating rules remain important.
The quality of ownership documents and the realistic market value of the asset are critical. The cleaner the documentation and the more liquid the machinery or transport, the easier it is to evaluate the transaction.
Short answer
Sale and leaseback allows a business to receive working capital secured by existing machinery, transport or a car and continue using the asset. Terms depend on the condition, documents, value, age of the asset and the client’s financial profile.
Conclusion
Financial leasing is not just a way to buy existing machinery, transport or a car in parts. It is a financing tool that helps receive the required asset, keep the budget manageable and adjust payments to the client’s real situation.
If You have machinery or transport and need working capital, contact GUSTO LEASING to assess the possibility of sale and leaseback.
