Sale leaseback transactions are nothing new, but they are a worthwhile tool for all building owner-operators to understand, particularly as the capital markets tighten. Aside from financing, all other costs of doing business have concurrently increased, from labour to transportation, construction to inventory. These all affect the financial health of a business and can jeopardize the financial ratios that the banks must see maintained in order to avoid disruptions. One tool not often considered by building owners is the sale leaseback transaction which can have immediate positive outcomes for their financial statements, and perhaps even allow for further growth and expansion if implemented properly.
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