SMEs rely on strategic financing mix

Sale & Lease Back is suita­ble for medium-sized manu­fac­tu­ring compa­nies that own a valuable, univer­sally usable and diver­si­fied machine park. This includes, for exam­ple, compa­nies from the mecha­ni­cal engi­nee­ring, metal, plas­tics or wood proces­sing, cons­truc­tion, food proces­sing, textile or prin­ting indus­tries etc.. In most cases, the capi­tal requi­re­ment is between EUR 0.25 million and EUR 10 million, which we can make available to medium-sized compa­nies quickly and flexi­bly via sale & lease back. This usually corre­sponds to annual sales of between 10 million euros and 200 million euros. In the context of finan­cing, our focus is on the value of the machi­nery and not on the credit­wort­hi­ness of the company, so that this approach is parti­cu­larly suita­ble for compa­nies under­go­ing reor­ga­niza­tion and restructuring.

The occa­si­ons for the use of Sale & Lease Back are mani­fold. There is a need for addi­tio­nal liqui­dity for a wide variety of reasons, for exam­ple for the corpo­rate restruc­tu­ring proces­ses just mentio­ned or for the advance finan­cing of orders. Addi­tio­nal finan­cial resour­ces may also be requi­red to replace exis­ting forms of finan­cing such as mezza­nine, mini-bonds or bullet loans. Over the years, we have also assis­ted in a number of corpo­rate succes­si­ons in which former share­hol­ders were paid out or the focus was on finan­cing the acqui­si­tion of the company. Due to the object-rela­ted nature, sale & lease back can be used even in the case of insol­vency under certain condi­ti­ons, for exam­ple to finance the insol­vency plan or the debtor in self-admi­nis­tra­tion when taking over “his” company from insolvency.

In the case of sale and lease back, used machi­nery and equip­ment are sold to a leasing company and the purchase price is paid directly to the company. Follo­wing the sale, the company leases back the machi­nes so that they can conti­nue to be used without a break. Sale & Lease Back provi­des the company with addi­tio­nal liqui­dity inde­pen­dent of banks and within the frame­work of pure inter­nal finan­cing. This can be used freely available without speci­fi­ca­ti­ons and rest­ric­tions. The lease install­ments repre­sent deduc­ti­ble opera­ting expen­ses to a signi­fi­cant extent and can gene­rally be finan­ced on an ongo­ing basis from the sales gene­ra­ted. It takes an average of six to eight weeks from initial cont­act to payment of the purchase price.