object(WP_Post)#3563 (24) { ["ID"]=> int(8005) ["post_author"]=> string(1) "7" ["post_date"]=> string(19) "2023-04-05 09:38:35" ["post_date_gmt"]=> string(19) "2023-04-05 07:38:35" ["post_content"]=> string(3851) "One of the most interesting vehicles in alternative finance is Leaseback Financing, which can be an ideal solution for Swiss enterprises looking to finance their heavy capital assets or machinery. Companies that invest heavily in machinery and material in their early years may face a financial bottleneck at some point, where they need financing for growth but also want to preserve their liquidity. In such cases, a tailor-made Leaseback solution can help the company to utilize the cash they invested in an asset for other purposes, while still operating their business with the asset itself.
Leaseback financing is an attractive alternative method of raising capital
When a company needs to raise cash, it typically takes a loan, increasing its debt, or initiates an equity financing, issuing stock. On the other hand, a leaseback transaction can help improve a company's balance sheet health. The liability on the balance sheet will go down, by avoiding more debt, and current assets will show an increase, in the form of cash and the lease agreement.
How does leaseback financing work for swiss enterprise ?
The process of Leaseback Financing involves a company purchasing an asset and paying for it in full before pledging it to a leasing company or lender within a certain period. After the pledge, the pledgor/lessee signs a lease agreement with the pledgee/lessor and leases back the asset. The loan received from the pledge is paid out to the pledgor/lessee, allowing them to utilize the cash for other purposes while still operating their business with the asset.
Let's assume that you want to pledge and lease back fixed assets, such as vehicles, machinery, or real estate, worth 1 million Swiss francs. A reasonable risk discount will be 500,000 Swiss francs, so you will get 500,000 Swiss francs paid out as a loan. The average term of such a deal can be assumed to be 48 months. You can continue to operate with the machine, but you will receive liquid assets and can thus finance your growth.
Benefits of Leaseback Financing for small, medium and large swiss enterprise ?
- Can provide additional tax deductions - A leaseback transaction may provide additional tax deductions, reducing the overall tax burden of the company.
- Enables a company to expand its business - Leaseback financing can provide additional funds for a company to invest in its growth, expanding its business and increasing its market share.
- Can help to improve the balance sheet - By avoiding more debt and increasing current assets, a leaseback transaction can help to improve a company's balance sheet health, making it more attractive to investors.
Key takeaways about leaseback financing for swiss entrepreneurs
Leaseback Financing can be an excellent solution for companies looking to finance their growth without taking on more debt. By pledging an asset and signing a lease agreement, companies can receive liquid assets to finance their growth while still operating their business with the asset. If you're a Swiss enterprise looking for a financing solution for your heavy capital assets or machinery, Leaseback Financing might be the perfect solution for you.
" ["post_title"]=> string(94) "What is leaseback financing and why it's the best solution for financing assets in Switzerland" ["post_excerpt"]=> string(208) "One of the most interesting vehicles in alternative finance. Let's learn more about leaseback financing, leasing, pledge, pledgor, pledgee, fixed assets, alternative finance, capital raise, guarantee, growth." ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(6) "closed" ["post_password"]=> string(0) "" ["post_name"]=> string(93) "what-is-leaseback-financing-and-why-its-the-best-solution-for-financing-assets-in-switzerland" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2023-04-05 09:38:36" ["post_modified_gmt"]=> string(19) "2023-04-05 07:38:36" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(29) "https://prestaflex.ch/?p=8005" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }
One of the most interesting vehicles in alternative finance is Leaseback Financing, which can be an ideal solution for Swiss enterprises looking to finance their heavy capital assets or machinery. Companies that invest heavily in machinery and material in their early years may face a financial bottleneck at some point, where they need financing for growth but also want to preserve their liquidity. In such cases, a tailor-made Leaseback solution can help the company to utilize the cash they invested in an asset for other purposes, while still operating their business with the asset itself.
Leaseback financing is an attractive alternative method of raising capital
When a company needs to raise cash, it typically takes a loan, increasing its debt, or initiates an equity financing, issuing stock. On the other hand, a leaseback transaction can help improve a company’s balance sheet health. The liability on the balance sheet will go down, by avoiding more debt, and current assets will show an increase, in the form of cash and the lease agreement.
How does leaseback financing work for swiss enterprise ?
The process of Leaseback Financing involves a company purchasing an asset and paying for it in full before pledging it to a leasing company or lender within a certain period. After the pledge, the pledgor/lessee signs a lease agreement with the pledgee/lessor and leases back the asset. The loan received from the pledge is paid out to the pledgor/lessee, allowing them to utilize the cash for other purposes while still operating their business with the asset.
Let’s assume that you want to pledge and lease back fixed assets, such as vehicles, machinery, or real estate, worth 1 million Swiss francs. A reasonable risk discount will be 500,000 Swiss francs, so you will get 500,000 Swiss francs paid out as a loan. The average term of such a deal can be assumed to be 48 months. You can continue to operate with the machine, but you will receive liquid assets and can thus finance your growth.
Benefits of Leaseback Financing for small, medium and large swiss enterprise ?
- Can provide additional tax deductions – A leaseback transaction may provide additional tax deductions, reducing the overall tax burden of the company.
- Enables a company to expand its business – Leaseback financing can provide additional funds for a company to invest in its growth, expanding its business and increasing its market share.
- Can help to improve the balance sheet – By avoiding more debt and increasing current assets, a leaseback transaction can help to improve a company’s balance sheet health, making it more attractive to investors.
Key takeaways about leaseback financing for swiss entrepreneurs
Leaseback Financing can be an excellent solution for companies looking to finance their growth without taking on more debt. By pledging an asset and signing a lease agreement, companies can receive liquid assets to finance their growth while still operating their business with the asset. If you’re a Swiss enterprise looking for a financing solution for your heavy capital assets or machinery, Leaseback Financing might be the perfect solution for you.