Sale and Leaseback Breathes New Life Into a Customer Challenge
Even when your business is on the right path and you’re ready to turn on cruise control, you still need to be mindful of those small bumps in the road which can lead to delays that can take years to recover from. That’s why maintaining cash liquidity is so important. Having readily available capital helps protect your business from unforeseen obstacles in the road ahead, and can make any changes on the horizon just another growth opportunity.
One of ARI’s customers, a leading service provider to the oil and gas industry, was in the middle of a split from their parent organization, and found their liquid assets to be lacking. Up until that moment, ARI and the customer were in a service-only contract, and they were working with another fleet management company on their vehicle leases, but they turned to us when they needed a creative solution to their current situation.
To help free-up capital and significantly reduce operating cost for this customer during this critical transition period for their business, ARI purchased approximately 360 of their vehicles. We then enrolled the customer in ARI’s Sale and Leaseback program, a unique solution that helps create short- and long-term liquidity. Through strategy, ARI was able to lease the vehicles back to our customer, allowing them push forward with a cash safety net through their organizational split.
They were also able to transition into an open-ended leasing structure, which allowed the customer to build positive equity: The increased flexibility around open-ended leasing meant that they could recoup their fleet investment at the end of the term around vehicles that still had equity.
All in all, a simple transition into a more flexible lease policy — with the help of ARI and our unique Sale and Leaseback solution — lead to lower TCO.
We’re living in a time when cash liquidity is hard to come by. Have you considered your options? Download this free Sale and Leaseback eBook to learn how alternative leasing can work for you . And click here to get more free content straight to your inbox with ARI’s bi-weekly news update, The Morning Brake.
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