Owning motor vehicles is not necessarily the best use of any organisations capital, especially if these owned vehicles do not directly generate income.

The removal of your motor vehicles from your balance sheet via a sale and leaseback transaction will free up capital which a business may invest in 'core' operations to generate further income or reduce other debt.

The same is also possible for employees wanting to sell their existing vehicle (less then four years old) and leaseback under a novated lease agreement. This option may provide them funds to purchase other assets or reduce other debt.

The benefits in undertaking a Sale and Leaseback include:

• An immediate cash injection as valuable funds tied up in depreciating assets are released back into the business.
• Your assets are managed by a specialist company whose core business is asset management. Those staff previously involved in management of the assets will be freed up to assist with the development and operation of your core business.
• The operating costs associated with the use of the assets can be estimated and incorporated into one monthly account covering the cost of operating your entire asset base. The cost of using these assets move from being a variable cost to a fixed cost, virtually overnight.
• Planning can begin for the replacement of those assets that are nearing the end of their economic life without having to worry about where the capital to purchase replacement equipment will come from.
• Reduced administration costs due to daily administration being undertaken by us.

When each asset is evaluated as part of the Sale and Leaseback transaction, we will assess its current value, its economic life and arrive at a recommended replacement program. Once the replacement program is agreed upon, the lease attributes for each asset will be established to ensure that equipment is replaced before it becomes a maintenance headache or obsolete.

A Sale and Leaseback will provide you with a fixed operating cost and allow complete operational and financial control over your asset base. It will also allow you to utilise the resultant cash injection elsewhere in your business in order to achieve an improvement in the returns of the core business.