A sale leaseback can have many advantages, including:

Tax benefits Lease payments can be deducted from a company's taxable income, which can reduce the amount of taxes owed.

Balance sheet improvement A sale leaseback can improve a company's balance sheet if the property's value is higher than its book basis.

Access to capital A sale leaseback can provide liquidity by selling a property and leasing it back. This can help businesses that are looking to grow.

Flexibility A sale leaseback can provide flexibility to redeploy capital into a company's core business.

Avoid borrowing costs A sale leaseback can help avoid additional costs like interest rates associated with debt financing.

Generate cash flows A sale leaseback can improve cash flow by putting cash back into a company and having smaller recurring monthly payments.

Maintain property control The seller can maintain long term control of the property use.

#saleleaseback #realestate #financing