The practical answer
The business sells an asset to a finance provider and continues using it under a rental agreement. It can release cash, but ownership, cost, VAT and end-of-term implications need careful review.
Review the sale price, rentals, permitted use, insurance obligations and end-of-term provisions before committing. Physical possession stays with the business while legal ownership changes.
Ask the accountant about tax and VAT for the particular transaction. Compare cash released with the total future commitment rather than treating it as borrowing without consequences.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Sale and leaseback →Explore the relevant guides
Asset refinance — For current settlements, valuations and possible equity release.