Sale and hire back allows a business to access some cash flow by refinancing equipment or vehicles and then hiring them at a pre-agreed price. This is usually allowed when vehicles or equipment that is being refinanced are relatively new and still have a high resale value.
If a business sells their assets to a financier they may receive a taxation charge, however, a chattel mortgage will induce no such penalties. A chattel mortgage allows finance to be accessed against the value of goods and assets, the finance company will then have a charge over the goods. It is important to fain professional financial advice before committing to either of these financial agreements.
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