FORT LAUDERDALE, FL (July 7, 2020) – Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing, and lifecycle cost management today announced it has 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 and a large regional convenience store chain with retail stores.
Under the agreements, Fleet Advantage will purchase approximately 150 of their older assets and lease them back until they transition into newer, safer equipment at a predetermined, fixed monthly payment. The transaction generates an immediate influx of cash and produces an ongoing reduction in their overall costs. Each company independently determined that leasing from Fleet Advantage offers lower cost, greater flexibility, reduced risk and improved cash flow.
Fleet Advantage’s Sale-Leaseback is receiving a great 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.
“These two companies rely on a supply chain that faces challenges stemming from the COVID-19 pandemic,” said John Flynn, CEO of Fleet Advantage. “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:
· Right-sizing of their 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
About Fleet Advantage
Fleet Advantage has over $1 Billion of assets under management and serves America’s top truck fleets and guarantees the absolute lowest cost of operation by providing truck and trailer financing with matching proprietary data driven IT and fleet analytics, using the latest equipment technology to achieve better fleet “uptime” and maximum safety. Fleet Advantage is the largest and fastest-growing, privately held, independent, Class 8 truck lessor in the U.S. and ranked the 9th Top Private Independent from Monitor Daily; in 2015 is also named to Inc. magazines’ 500|5000 list of fastest growing companies in the nation. In 2011, CEO John Flynn received the Ernst & Young Entrepreneur of the Year® 2011 Florida – Emerging Category award.