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…
Read MoreSales 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
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.
Get Financing Blog
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…
Read More
10 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…
Read More
How to Qualify for Commercial Drone Financing & Leasing
You pick the Commercial Drone Equipment you need and we help you finance it. Contact BNC for Commercial Drone Equipment…
Read More
Dental Equipment Financing Program by BNC Finance
Dental Equipment Financing and Leasing You pick the Dental Equipment you need and we will help you finance it. Contact BNC…
Read More
Business Drone Financing allowing many commercial sectors to increase productivity while reducing expenses.
Commercial Drones for Construction The architects and people in the construction sector are making the best use of drones. Drones…
Read More
Tax Code 179. How much can your business save in 2019?
Using Section 179 with an Equipment Lease or an Equipment Financing Agreement might be the most profitable decision your business…
Read MoreOffer Financing Blog
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…
Read More
Equipment Financing Section 179 Tax Advantages
Tax Code Section 179 Section 179 Example Here is an example of a business owner using tax code section 179.…
Read More
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…
Read More
Ways to Increase Equipment Sales Through Strategic Partnerships
As businesses grow and expand, owners are learning to use their money more carefully, stretching the dollar as far as…
Read MoreClose More Sales – Offer as Low as Monthly Payment Calculator
Have you ever sent out a quote & never heard back from the client? Not everyone will tell you your…
Read MoreIndustry Related Blog
Dental Equipment Financing Program by BNC Finance
Dental Equipment Financing and Leasing You pick the Dental Equipment you need and we will help you finance it. Contact BNC…
Read More
Business Drone Financing allowing many commercial sectors to increase productivity while reducing expenses.
Commercial Drones for Construction The architects and people in the construction sector are making the best use of drones. Drones…
Read More
Event Rental Equipment Financing Program
BNC Finance’s Event Rental Equipment Financing Program allows You pick the Event Rental Equipment you need and we will help…
Read MoreHow Property Managers Increase Rent Collection while reducing operating expenses
Rental Owners rent out properties in order to collect revenue in the form of rental income. It sounds like an…
Read More
How Health and Fitness Clubs Can Reduce Operating Expenses
Health & Fitness Club Expense Reduction Many Health and Fitness Club Operators focus on how they can increase per member…
Read More4 Tips to Manage your Restaurants Cash Flow
The restaurant business is one of the most difficult industries to manage cash flow. One slow week is all it…
Read More