Is a sale-leaseback a good idea?
There are many reasons that a sale-leaseback can be advantageous to business owners, including tax advantages and greater access to working capital. 1. Greater cash flow: A sale-leaseback allows the previous owner to access capital that would otherwise be tied up in the ownership of the asset.
What are the risks of a lease back?
In a leaseback, the buyer bears the risk that the property will not be in the same condition at the end of the leaseback as it was at the time of closing/settlement. REALTORS® need to work closely with their buyer clients in crafting an agreement that minimizes this risk and protects their ownership rights.
Why would a business do a sale-leaseback?
A sale-leaseback enables a company to sell an asset to raise capital, then lets the company lease that asset back from the purchaser. In this way, a company can get both the cash and the asset it needs to operate its business.