AAM can provide facilities for the Sale and Leaseback ("SLB") of returnable plastic containers (“RTP”), pallets, technology assets (such as personal computers and tablets), smart safes and other cash security equipment that businesses have previously purchased, giving a business the option of releasing the cash it has previously used to acquire equipment.
The SLB facility enables a business to raise capital whilst, critically, still allowing it to retain and use the equipment, so it gets both the cash and the on-going use of the vital equipment that is needed to operate its business, whilst providing capital to invest in new opportunities as they present themselves.
The details of the arrangement, such as the lease payments and the lease duration, are negotiated and
agreed between AAM and the business at the same time as the business sells the equipment to AAM.
In a sale and leaseback transaction, the seller of the asset becomes the lessee and the purchaser becomes the lessor and the subsequent lease
gives the on-going use of the equipment for a pre-determined time period in return for fixed monthly lease payments, meaning that nothing changes in how the lessee runs its daily business.