Fleet Advantage, a truck fleet business analytics, equipment financing, and life-cycle cost management company, unveiled a new Sale-Leaseback program designed to infuse cash and flexibility into transportation fleets. Fleet Advantage developed this program to help fleet organizations substitute for lost revenues during the current COVID-19 pandemic.
In the sale-leaseback program, a company can select the assets from their fleet that are older models, which are inefficient and more unreliable, and Fleet Advantage will purchase those assets and lease them back to the fleet for an interim period until they can then transition to new equipment when ready. This enables organizations to generate cash in the near term, which is especially critical today given the COVID-19 pandemic and strain it has placed on companies and the economy. The cash gained can then be used for immediate internal needs or to simply provide extra working capital.
“We’re launching this program to help our clients with transportation fleets realize an immediate infusion of cash and flexibility into their organizations,” said John Flynn, CEO of Fleet Advantage. “Having additional cash on hand is critical for today, but the flexibility to upgrade to newer truck technology with advanced safety features tomorrow will help fleets come out of the pandemic with a significant competitive edge through financial and operational efficiencies gained.”
The transportation fleet industry has continued to look for ways to absorb the sharp economic decline as a result of the pandemic. The Sale-Leaseback program allows for the downsizing of fleets if an organization has a surplus of trucks, and it will have a positive effect on the bottom-line P&L since the ensuing lease payment will be lower than the current depreciation charge.
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