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

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…

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

How does Invoice Financing Work?

What is Invoice Financing A Long Term Working Capital Solution Invoice factoring, also referred to as accounts receivable financing, is a form…

7 Vital Tips to know About Business Equipment Financing & Leasing

7 Vital Tips to know About Business Equipment Financing & Leasing Are you thinking whether to finance or lease your…

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…

Providing Businesses Access to Capital Equipment Financing & Working Capital

Could Equipment or Working Capital help you Business? It only takes a couple minutes to fill out our Online Application…

Landscaping Equipment Financing by BNC Finance

Landscaping Equipment Financing by BNC Finance You pick the Landscaping Equipment you need and we will help you finance it.…

BNC Finance Dental Equipment Finance Program

Dental Equipment Financing by BNC Finance

Dental Equipment Financing by BNC Finance You pick the Dental Equipment you need and we will help you finance it.…

Offer Financing Blog

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…

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…

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…