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 

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

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

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.

BNC Finance Blog

Get Financing Blog

what is tax code 179

What is Tax Code Section 179

Read More
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…

Read More
10 Benefits of Financing your Business Equipment

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
Construction Drone Financing

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

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
Commercial Drone Financing

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

Offer Financing Blog

5 ways to use leasing as a sales tool video

Read More
Expanded Industry Financing Solutions

Expanded Industry Financing Solutions

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

Read More
Why Equipment Sales Professionals should offer equipment leasing

Why Equipment Sales Professionals Should Offer Equipment Leasing

5 Reasons to offer equipment leasing as a tool to close more equipment Sales 1. Overcome Price Objections Overcome Price…

Read More
How to offer financing payments as B2B sales strategy

Offer Financing Payments as a B2B Sales Strategy

It is important to give your sales team the tools they need to close more business. This video shows an…

Read More

Industry Related Blog

Dental Equipment Financing

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
Commercial Drone Financing

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
Catering and Event Equipment Financing and Leasing

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 More

How 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
Cost Cutting for Health and Fitness Clubs

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 More

4 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