Lex Autolease can Aid Companies needing Quick Cash Injection

Lex Autolease, one of the UK’s largest company car, van, and SUV providers, just conducted a survey along with YouGov which shows a growth in funding for “sale and leaseback” agreements. Almost 30 percent of financial directors said they intended to get rid of company-owned vehicles in exchange for cash.

The survey results show that the UK vehicle leasing firms saw a cash injection of more than £50 million over the last year due to thousands of company owned vehicles being purchased off the market. This new form of funding is increasing in popularity, causing a switch in contract ownership, and is actually helping boost the market despite the credit crunch.

Andrew Kirby, a regional sales rep for Lex Autolease, said that many firms were looking into quick ways to generate cash during the credit crunch. Many of them turned to selling and leaseback as the ideal solution. The result is an immediate cash flow as well as a good investment.

He added that even more companies could likely increase their capital by releasing holds on company vehicles which are not being used or are not necessary in such tight economic times. He also said that is faster than other avenues of funding as the cash injection is almost simultaneous.

Lex Autolease has said that entire fleets can be released for immediate cash revenue. The company will hire Lex Autolease to takeover the company’s fleet, typically for three to four years, and  manage the fleet for them. In turn, the same employees get to retain the same company vehicles, however, the management and lease contractions are being outsourced for revenue.

Not only is instant cash injection a bonus to this option, but taxes are also lighter for companies which switch to leaseback. The leaseback option removes the vehicles from the company balance sheets as well as removes the company’s liability associated with ownership of the vehicle.