Sale & Leaseback
What Is Sale & Leaseback?
Sale & Leaseback is a financial transaction where an enterprise sells its depreciable assets registered in its name to our bank and leases the same asset back via a leasing agreement. At the end of the lease term, the sold assets can be transferred back to the lessee upon the customer's request.
Real estate, machinery, equipment, and construction machinery with a valuable second-hand market can be subject to the agreement. This method helps enterprises meet their liquidity needs while allowing them to continue using the asset. The Sale & Leaseback transaction is a method that provides advantages in terms of balance sheet management and securing financing.
Products Eligible for Sale & Leaseback;
- Land, workplaces, residences
- Agriculture and livestock machinery and equipment
- Power plants and communication devices
- Dry cargo ships, tankers, and other sea vessels
- Energy facilities
- Land transportation vehicles
- Aircraft
- Medical devices
- Construction machinery, cranes, heavy equipment
- Printing and textile machinery
- All kinds of benches and production machinery
Products Not Eligible for Sale & Leaseback;
- Products in the nature of consumable materials
- Raw materials, intermediate goods, and goods that lose their characteristics when used.
What Are the Advantages of Sale & Leaseback?
- Provides liquidity.
- Increases the company's assets and net working capital on the balance sheet, enabling equity development.
- Positively affects the company's borrowing and liquidity ratios, increasing its balance sheet rating.
- Reduces the tax base by allowing depreciation expenses to be deducted from the rights included in the company's assets, providing tax advantages.
- Grants the opportunity to continue using the sold asset.