Furniture is usually bought as capital and written down over a period that rarely matches how long the tenancy lasts. Lease-back separates the use of the furniture from the ownership of it, which suits a tenancy with a defined end date or a client who would rather not hold the asset.
Lease-back
Binowee supplies and installs the furniture, and the client pays to use it over an agreed term rather than buying it outright. At the end of term the furniture is collected by us, which is where this differs from a straight finance arrangement: the collection and the downstream reuse or recovery are part of the same agreement.
Where it fits
- A tenancy with a known expiry, where the furniture should not outlive the lease
- A client with capital constraints or a preference for an operating cost
- A short term or transitional site, including decant and swing space
- A project where end of life responsibility needs to sit with the supplier
What we need to quote it
- Furniture schedule or the furniture layout drawings
- Term required, and the tenancy expiry date
- Site address and access conditions
- The contracting entity
Terms, rates and end of term options are set per arrangement. We will not quote a rate without the schedule and the term, and any arrangement is documented before anything is ordered.
Asset management
Whether the furniture is leased or owned, the same question comes up at year three: what do we actually have, and what condition is it in. We maintain a register of what was supplied so that question has an answer.
What the register holds
- Item, finish and quantity as installed, by location
- Supply date, warranty position and expiry
- Condition at last inspection
- Spares and replacement components available
What it is used for
- Reordering to match existing, without a guess at the finish code
- Churn and relocation, moving assets rather than repurchasing
- Warranty claims, with the supply date and model already recorded
- End of lease planning, with a known quantity to redeploy or recover