Planning to use off-balance sheet financing leases for your manufacturing business?
Off-balance sheet (OBS) financing is pretty popular for manufacturing industries and publicly traded companies. This is because OBS covers current assets or liabilities while at the same time, maintain a clean balance sheet required by investors and creditors.
OBS financing is very attractive to all kind of companies especially if the company is already highly leveraged. For example, a company that already has high debt-to-equity ratio, increasing debt covenants may just bring more problems.
That’s why in today’s blog post, we’re going to discuss with you all about OBS financing leases and how you can effectively use this instrument.