A sale and leaseback is a flexible financing arrangement that allows businesses to unlock the value tied up in existing assets while continuing to use them for operations. It’s commonly used for property, vehicles, equipment, and machinery, helping businesses improve cash flow and fund growth without taking on additional debt.

Assets Eligible for a Sale and Leaseback: Passenger Vehicles, trucks, business vehicles, trailers, machinery and/or equipment*How a Sale and Leaseback Works

How a Sale and Leaseback Works

1. Sale of the Asset: The business sells an asset—such as a vehicle, piece of machinery, or property—to a buyer, typically a financial institution or investor, at an agreed market value. This provides an immediate lump sum of cash to strengthen liquidity.
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2. Leaseback Agreement: Following the sale, the business enters into a lease agreement with the buyer to continue using the same asset. The lease outlines payment terms, duration, and any end-of-term options.
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3. Continued Use: The business retains full use of the asset without operational disruption, while the buyer earns income through regular lease payments.
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4. End of Lease Options: At the end of the lease term, the business may have the option to buy the asset back, renew the lease, or return the asset, depending on the agreed terms.

Benefits of a Sale and Leaseback
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✔ Unlock cash tied up in owned assets
✔ Improve cash flow and strengthen working capital
✔ Continue using assets essential to operations
✔ Avoid taking on new debt or disrupting business activity
✔ Flexible structure with potential end-of-term purchase options

If you’re looking to free up capital while maintaining business continuity, a sale and leaseback could be the ideal solution.

Complete our quick online form or call us today to explore your options and access the value within your existing assets.