CMCC Help - Sale & Leaseback

neuroticprincess

Good Morning

Can someone help me with some advantages and disadvantages to sale and leaseback? I haven't been able to find this anywhere and its not in my text book.

Thanks

A-Vic

neuroticprincess wrote: »

Good Morning

Can someone help me with some advantages and disadvantages to sale and leaseback? I haven't been able to find this anywhere and its not in my text book.

Thanks

Have you tried goggle or ask?

SandyHood

Google page regarding M&S sale and leaseback

If you sell assets (such as M&S stores) you can raise a lot of cash to invest in the business, and will pay to lease the stores from the finance company.
You no longer own the stores, but can use them in the same way.
You have the cash and don't have the same hurdles to overcome in raising the funds as you would have if you were taking out a loan. Additionally, no interest is payable although you now pay rent which you did not pay before.