Sale and lease-back
For companies that need liquidity or cash in their business and have one or more properties.
Need liquidity in your business? If you have an asset that you use as an office or business premises, you can get access to funds without having to go to a bank to apply for a loan.
Companies often have assets but need cash, and to raise it, they think they need to apply to banks for financing.
Another option for them, however, is to carry out a sale leaseback transaction. What is a sale lease back transaction? It’s an operation whereby a company sells a real estate asset to a leasing company to sign a financial leasing contract for the property for an extended period of time.
We offer you an alternative to bank loans to help you meet payments or make one-off investments when you don’t have liquidity.
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Los servicios de asesoría contable que necesitas
Nuestro equipo de contabilidad podrá ayudarte en aspectos como:
The alternative to a bank loan to provide liquidity for your business
This method of financing consists of selling your property to a company and then entering into a leasing contract for it. You ensure liquidity, but can also continue use of the property through leasing.
Common mistakes in sale and leaseback transactions:
Relying on a team that’s specialised in sale & lease-back operations, such as Leialta, will prevent you from running the following risks:
- Failing to include clauses that safeguard your company’s interests in the sale and purchase agreement. For example, include a right-to-buy clause in the lease, in case you’re interested in buying the property back in the future.
- Not paying all the taxes related to the sale and lease-back transaction. It’s important to be clear about what taxes will accrue during the process.
- Not managing the fiscal aspects of the transaction correctly. This can lead to cost overruns and penalties.
- Not carrying out the sale and rental process correctly. This may result in you being unprotected in some aspects and unable to enjoy all the guarantees that you should be able to as a seller and subsequent tenant.
If certain aspects or situations that may arise in the future are not included in the contract, a solution might have to be sought a posteriori, including a judicial one.
The sale and lease-back contract is complex and needs to be negotiated and studied in depth by legal counsel
- It’s a financing operation for the initial owner who then becomes the tenant, so in order to protect profitability and to be net, all expenses related to the use of the property are borne by the tenant.
- The contract provides for a purchase option in favour of the initial seller, so the time period for exercising it, the manner of execution and the price of the future sale and purchase must all be established.
What sets our sale and lease-back operations apart?
At Leialta, we have a team of professionals specialised in tax law, commercial law, real estate law and accounting, meaning we can provide you with all the support you need to ensure the transaction is carried out successfully, without unforeseen events, and always looking after your interests.
Our experience with this type of transaction means we can guarantee all procedures are carried out correctly while delivering the best possible deal for your company.
Having worked for years with different types of clients and situations, we know how to adapt and act to find the solution that best suits your company.
Jose Luna
Head of the Legal and Commercial consulting area
Success stories Global Voice Group
GVG is a foreign company operating in Spain. GVG’s management was unaware of the tax and accounting regulations in Spain but still had to meet the applicable accounting obligations as a foreign company.
We guided GVG in identifying its accounting and tax obligations in line with its corporate structure. During the process, GVG has acquired an understanding of the taxes it faces as well as the cause of these taxes.
We have more to tell you
We help you obtain financing for your company
We accompany you so that you do not make mistakes or take risks in the operation.v