How does Equipment Sale Leaseback Work?

What is an Equipment Sale Leaseback and How Does it work?

Equipment sale and leaseback refers to a funding transaction that involves a business selling its machinery and equipment to a financing firm (Lessor) without any interruption of business operations, the business (who initially owned the equipment) leases (rents) back the equipment from the new owner for an agreed duration. The business (lessee) will continue its normal daily operations with equipment without any interruption as a lessee and not as the owner.

The Equipment sale leaseback offers businesses that wish to increase their working capital, increase liquidity, and boost their financial statement position, an advantageous option. For businesses seeking a flexible platform to restructure their financial profile, taking advantage of your current asset's equity is a way to obtain capital for expansion or restructuring

7 Benefits of Businesses Leasing Equipment and Not Paying Cash

Why You Should NOT Pay Cash For Your Business Equipment For business, maintaining a positive cash flow is absolutely…

Sales leaseback funding steps:

A Business owner sells his equipment to a finance firm, named The Lessor.
He (the Lessor), in turn, offers to lease the same equipment to you the Lessee, at an agreed periodic payment (Rent). The agreed percentage payment will be based on an initial assessment of the business credit, finance and collateral.

The deal is closed, ownership is transferred to the Lessor, but the lessee still maintains possession of the assets for his business operations, but at a periodic rental fee

Looking for something else?

Referral Program

Do you work with Businesses? Earn Money as a BNC Finance Referral Partner

Learn More

Schedule a Call with a Business Advisor

Have Questions about our Programs? Schedule a call with a Business Advisor to see how BNC Finance can be a resource to your business.

Schedule a Call

BNC Finance Blog

Get Financing Blog

Section 179 Equipment Lease Example Video

Section 179 Example Video Here is an example of a business owner using tax code section 179. Steve is the…

5 reasons you should replace your equipment before it breaks

5 Reasons you should replace equipment before it breaks

5 Reasons you should replace business equipment before it breaks Using equipment to the end of its life cycle has…

How to Build Business Credit for Lowest Cost of Capital

Equірmеnt financing lеndеrѕ, as wеll аѕ bаnkѕ, use thе Six Cѕ of Credit to evaluate lоаn applications: The 6 Cs…

11 Benefits of Financing your Business Equipment

Every business utilizes some kind of equipment. As a matter of fact, you cannot run a successful business without getting…

How Does a Merchant Cash Advance Loan Work? (MCA)

What is a Merchant Cash Advance Loan? Tired of going through the hurdles of securing a bank loan for your…

5 Reasons to Lease or Finance Equipment even if you have the Cash

I am sure you have heard that old saying: “I don’t buy unless I can afford to pay for it”?…

Offer Financing Blog

Section 179 Equipment Lease Example Video

Section 179 Example Video Here is an example of a business owner using tax code section 179. Steve is the…

What is Tax Code Section 179

What is Tax Code Section 179 Section 179 of the IRS tax code allows businesses to deduct the full purchase…

Social Media Tips to Sell Heavy Equipment

Are you a company selling heavy equipment? If so, you have probably given a lot of thought to your marketing…

How to Increase Business Revenue through Strategic Partnerships

Forming Strategic partnerships with businesses provides mutual benefits and equips businesses to offer customers more value added options. Statistics have…