Three Advantages of Sale-Leaseback
Three Advantages of Sale-Leaseback The concept of a sale-leaseback is quite simple. A business owner runs a business out of a building owned by the business owner. The business owner sells the building but then leases the space back to continue the business. There are some advantages to the sale-leaseback option. 1. Unlock liquidity One of the biggest benefits of a sale leaseback is that it can provide businesses with much-needed liquidity. This can be used to fund growth, pay down debt, or simply improve the company's financial position. For example, let's say a company owns a commercial property that is worth $1 million. If the company sells the property and then leases it back, it will receive $1 million in cash upfront. This cash can then be used to invest in new equipment, hire new employees, or expand into new markets. 2. Reduce risk Another benefit of a sale-leaseback is that it can help to reduce risk. When a company owns a commercial property, it is exposed to the r