Fleet Advantage announced it has secured an additional volume of $7.5 million in new business through its pioneering Sale-Leaseback program. The additional volume follows an initial $17 million generated shortly after the program’s launch in May.

Fleet Advantage’s Sale-Leaseback program continues to receive extremely favorable market response based on its flexibility to dispose of surplus trucks and convert “dormant equity” locked up in truck ownership into cash with the opportunity to upgrade the fleet at a future date.

The program is ideal in today’s economic climate where organizations need more flexibility to right-size their fleet operations as well as identify an immediate influx of cash. Fleet Advantage will purchase a set number of existing truck equipment assets and lease them back to clients until they transition into newer, safer equipment at a predetermined, fixed monthly payment. The transaction also produces an ongoing reduction in their overall costs. Clients working with Fleet Advantage have all determined that leasing their trucks offers lower cost, greater flexibility, reduced risk and improved cash flow.

“Our Sale-Leaseback initiative helped to immediately improve the cash flow for several clients when we implemented the program following the onset of the COVID-19 pandemic earlier this year,” said Katerina Jones, Senior Director of Marketing and Business Development of Fleet Advantage. “The program has continued to be a critical factor for many clients looking to remain competitive with their fleet operations during an economy that still shows great uncertainty.”

Benefits of the Sale-leaseback program include:

• Right-sizing of a fleet
• More efficient use of capital
• Reduction of risk to seller on the future disposition of trucks
• Beneficial accounting treatment that does not add to long-term debt or impact lending covenants
• Retains full access to existing credit facilities
• New truck upgrades at a pre-determined, fixed monthly lease payment