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

How to Build Business Credit for Lowest Cost of Capital

In today’s financial landscape, the ability to build business credit is more than a strategic move; it’s a necessary component…

Optimizing Equipment Financing: Tailored Terms and Structures

Tailoring Equipment Financing for Optimal Flexibility: Unique Terms and Structures for Your Business

In the realm of business, financial flexibility is a cornerstone of success. Understanding and leveraging the diversity of financial tools…

Harness State-of-the-Art Technology with Equipment Financing: A Game Changer for Businesses

Take Advantage of State of the Art Technology In the modern business landscape, keeping up with the latest technology is…

Jumpstarting Productivity: Accelerate Your Business with Equipment Financing

In the competitive business world, launching your operations and boosting productivity from the get-go is crucial. However, the capital investment…

Benefits of Financing and Leasing your Business Equipment

Benefits of Financing your Business Equipment

Advantages of Financing and Leasing Commercial Equipment Financing and leasing equipment offers substantial business benefits, especially for startups and established…

Working Capital Loans, Explained

Small business financing is a great tool for companies looking to build their business via staffing, new equipment, aggressive marketing,…

Offer Financing Blog

5 ways to use leasing as a sales tool video

Expanded Industry Financing Solutions

Automotive Equipment Financing & Leasing Auto Lifts Tire Balancing Machine Smog Test Machine Auto Repair Equipment Windshield Repair Equipment Restaurant…