You sell equipment your business owns free and clear to a lender, and lease it right back. Nothing moves. Same machines, same operators, same production schedule. The difference is a lump sum of cash in your account, and a monthly lease payment going forward. At the end of the term you typically buy the equipment back for a nominal amount.
A sale-leaseback makes sense when you need working capital and either do not want to wait out a traditional loan process, or a bank has already said no on collateral grounds while you are standing on the collateral. Common uses: payroll during a growth push, funding an acquisition, mobilizing for a large contract, or retiring expensive short term debt.
Machine tools, manufacturing lines, construction equipment, trucks and trailers, printing and packaging equipment, medical and lab equipment. It does not need to be new. The appraisal drives the number, not what you paid, so well maintained older equipment often unlocks more than owners expect.
Because the loan decision rests on the equipment rather than years of financials, these deals close quickly. We closed a $2 million sale-leaseback for a manufacturer in about three weeks, including the full equipment appraisal.
Pricing depends on the equipment, the term, and the credit story, so the honest answer is a range: expect rates above a bank term loan and well below merchant cash advance territory. We will give you the real number after the appraisal. The conversation and the review are free; if we place your financing, we charge a small fee at closing.
No. You keep possession and full use throughout the lease, and you typically buy it back for a nominal amount at the end of the term.
Usually yes, if it holds value and is maintained. The appraisal sets the number.
A percentage of appraised value, commonly 50 to 100 percent depending on the equipment type and market. Tell us what you own and we will tell you roughly what it could unlock.
Far less than with other products. The equipment is the story here, not your last two tax returns.
Ready to see the number? Start the equipment financing application, book a free consultation, or call 914.419.3059.