What is sale and lease back financing?

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Definition & procedure of the sale-and-lease-back process

Sale and lease back means selling and renting/leasing back. This special leasing procedure is usually used to bridge a short-term payment shortfall and amortize costs. To this end, the lessor and lessee conclude a lease sale and lease back agreement in which the amount to be paid out and all costs such as interest, credit risk, profit and the amount of the installment payments (monthly lease payments) are specified.

Once both leasing parties have reached an agreement, the lessee can continue to use the sold and leased asset directly. The distinction between possession and ownership is important here: although the lessee is (again) in possession of the asset, it is not the owner.

Advantages of the sale-and-lease-back method

1. One major advantage: the fast cash payout . For a personal asset such as a vehicle, property or intangible assets such as patents and brands, the quick cash payout makes sale and leaseback financing particularly attractive for most people.
2. Another important aspect that is already expressed in the lease back is the continued use of the asset that was initially sold. This flexible system makes the synonymous sale-and-rent-back procedure particularly attractive if you are a private individual, entrepreneur or organization that is dependent on the property or asset.
3. For companies, the sale-and-lease-back principle is also advantageous from a tax perspective, as the leasing installments can be claimed for tax purposes. At the same time, the equity ratio increases, while the company remains independent of the house bank. The positive effect on creditworthiness should also be emphasized in this context.

Sale and lease back for companies

Bridging liquidity bottlenecks with your own vehicle fleet

The sale and leaseback principle is a good option for companies in a financially strained situation if a fleet of vehicles, construction machinery or agricultural equipment can be contributed as assets. The leaseback sale enables companies to quickly become liquid, for example to pre-finance an order or secure wage payments, while continuing to use the vehicles, machines or equipment. In this way, companies can avoid downtime on their orders and continue to operate at full capacity. Anyone who can present vans, company cars, tractors or other vehicles as company property can maintain business operations without bureaucratic hurdles with the help of leaseback sales.

Sale-leaseback: Example of a leaseback sale of your vehicle fleet

In order to bridge short-term payment bottlenecks and continue to meet all business obligations, you as an entrepreneur can, for example, bring your company car to an on-site appointment with Pfando. Together with all the necessary documents (à checklist), you have already met all the requirements. Our trained staff at your local branch will provide you with a free quote after a detailed assessment of your company car. At Pfando, you will receive expert advice and the maximum payment amount for your vehicle - without a credit report, without any bureaucratic effort! And the best thing is: you will receive cash immediately upon mutual agreement and can continue to use your company car!

Market-leading provider of sale-and-lease-back financing in the automotive sector

As the market leader for short-term liquidity, Pfando is the right partner at your side. Secure your business operations and simply visit one of our branches across Germany for advice from our trained staff. Our advantageous credit alternative enables you to obtain cash easily and immediately and continue using everything as usual. Our contracts are checked, so you need have no fears - after all, we have been able to help more than 20,000 customers out of financial difficulties, including many entrepreneurs who are now financially stable again.

Only with us will you also benefit from the promise to outperform all written offers from our competitors! Get the most out of your company car, fleet, van, truck or agricultural equipment with Pfando!

Cash & drive on: This is how financing works at Pfando!

To ensure that your appointment on site runs smoothly and that you receive cash for your vehicle (company car, van, truck, etc.) immediately, we ask you to consider a few points in advance.

As a prerequisite for a successful appointment at Pfando, your vehicle (car, truck, motorcycle, motorhome, tractor or other agricultural equipment) must be registered and registered. You must also bring your vehicle registration document with you to the on-site appointment at Pfando. In addition, we require the vehicle registration document and your identity card or passport and, if necessary, a registration certificate to ensure a smooth process.

If you have been granted a power of attorney, you must bring the aforementioned documents from the principal with you. Once the contract has been signed, you can look ahead again and get on with your business. Benefit from the better credit alternative to car pawn and bridge your financial bottleneck without much effort!

Choose a strong partner for fast and uncomplicated liquidity to keep you on the road to success!