In carrying out operations, many companies own high-value assets such as heavy equipment, production machinery, or property that they use daily. However, not all of these assets are optimized financially. The sale and leaseback scheme offers a solution to convert assets into a source of fresh funds without having to stop using them. Through this scheme, companies sell assets to financing institutions and then lease them back to continue using them for operational activities.
The main advantage of a sale and leaseback lies in its ability to quickly and measurably increase a company's cash flow. Funds from the asset sale can be allocated for business expansion, purchasing raw materials, refinancing liabilities, or strengthening working capital. At the same time, the company can continue operating as usual because the assets remain under operational control through the lease agreement.
From a financial management perspective, this scheme also helps companies maintain a healthier balance sheet structure. Fixed assets that were previously "locked up" can be converted into liquidity, thus increasing financial ratio flexibility. Furthermore, lease payments can be scheduled periodically, facilitating cash flow management and medium- to long-term planning.
As the need for efficient and adaptive financing increases, sale and leaseback is becoming an increasingly popular alternative, particularly in the industrial, logistics, construction, and mining sectors. With proper planning and a credible financing partner, this scheme not only helps companies survive business challenges but also encourages asset optimization as part of a sustainable growth strategy.
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