Equipment Sale Lease Back Financing

Equipment Sale Leaseback Financing

A lot of new businesses make the mistake of pouring all their working capital into equipment.  Then 6 months to a year into running their business they find they need a working capital loan in order to keep their business going.  That’s where a sale leaseback on equipment can be very useful.

What is an equipment sale leaseback?

Equipment sale leaseback financing is NOT credit based!  It is a form of financing which is based on the value of the equipment used as collateral.  

Who can benefit from this kind of financing?

Any business that  owns out right high value equipment.  Start up businesses are welcome. This program is ONLY available for US businesses and not for consumers.  You CAN NOT use this program to purchase a business.  Many people approach us wanting to buy an existing business that has a lot of equipment that is 100% paid for.  They want to use the proceeds of the equipment sale leaseback to purchase the business.   Because there are many steps to purchasing a business we will only do the sale leaseback AFTER the business is purchased.  Meaning all titles have been transferred and you show as the owner of the business.

Requirements:

Equipment must be fully owned .  Meaning its not currently being paid for on a loan or lease.  SOMETIMES we will consider a piece of equipment that only has a few payments left until its fully owned.

How Are Loan Amounts Calculated?

Loan amounts are normally 50% the value of the equipment if sold in auctions. This means, if the equipment has an auction value of 50,000 USD then we can offer a sale leaseback for 25,000 USD on that piece of equipment.

What kinds of equipment are preferred by banks?

High value equipment like trucks, manufacturing equipment, trailers, forklifts, and more. Equipment which banks WILL NOT give Sale Leaseback Financing are those that depreciate quickly like computers, electronics like flat screens, and restaurant equipment.

How To Apply

Required Download Your Lease Application:

• Download Lease Application form here
• Download Equipment List
• Pictures of equipment

Criteria

• Equipment must be in good working condition. Unfortunately some people try to use broken equipment. This will be a waste of time since it can be detected long before they can get a cent.

Prior to having the funding approved, the bank will send a qualified inspector out to your location. The inspector will verify that the equipment matches what was pledged and is in good working order.