Fleet Advantage, a truck fleet business analytics, equipment financing and lifecycle cost management provider, secured new business through its Sale-Leaseback program. The transactions include a large international distributor that provides food packaging, disposable supplies, and cleaning and safety products as well as a large regional convenience store chain with retail stores.
Under the agreements, Fleet Advantage will purchase approximately 150 of each company’s older assets and lease them back until they transition into newer, safer equipment at a predetermined, fixed monthly payment. The transactions generate an immediate influx of cash and produce an ongoing reduction in overall costs. Each company independently determined that leasing from Fleet Advantage offers lower cost, greater flexibility, reduced risk and improved cash flow.
“These two companies rely on a supply chain that faces challenges stemming from the COVID-19 pandemic,” John Flynn, CEO of Fleet Advantage, said. “We have quickly implemented this Sale-Leaseback program and infused cash into their businesses at a cost lower than their credit facility and provide reduced, fixed costs that improve their bottom line. When the newer trucks deliver, it will significantly reduce their variable operating costs in fuel and maintenance. Longer-term benefits are realized through an optimized asset lifecycle strategy, lowering the total cost of ownership and state-of-the-art safety equipment that reduces driver retention and increases morale.”
Benefits of the Sale-lease back program include:
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