Equipment Sale And Leaseback For New And Used Equipment From $50,000 to $5,000,000

Call 289 816 0075

From the desk of:
Brent Finlay   CPA,CMA MBA
Business Financing Specialist
BFE Financial Services
Call 289 816 0075

If your looking to refinance equipment you currently own to free up capital for your business through an equipment loan or an equipment sale and leaseback transaction, then I suggest you call me at 289 816 0075 for an immediate free assessment of your equipment refinancing options.

Equipment Sale And Leaseback transactions can be used for ...

  • Working Capital
  • Lowering Interest Rates
  • Extending Loan or Lease Financing Terms
  • Consolidating Debt held in loans and leases
  • Manage end of term Balloon Payments
  • Upgrade existing equipment for additional new or newer Equipment
  • Assist with Business Tax Planning

For all these applications of incremental capital, equipment sale and leaseback can be an excellent source of funds, drawing on the equity you've built up in equipment, and can even be done on equipment you still owe money on if their is enough equity to draw from.

Equipment Sale And Leaseback can be available for longer life equipment items that have an established resale market.  

The most common asset types for equipment refinancing come from the following industries ...

  • Construction
  • Transportation
  • Manufacturing
  • Agriculture
  • Forestry
  • Mining

To find out your available equipment refinancing options ...

... give me a call at 289 816 0075 so we can quickly go over 1) how much funding your require from a sale and leaseback process, 2) review the equipment you have available for sale and leaseback, 3) discuss equipment sale and leaseback options, and 4) layout the process that is required to complete your equipment sale and leaseback request.

Alternatively, you can click this link and send me a note with an outline of what you're looking for, or to schedule a time to talk. 

The best way to find out how it works and what options are available is through a phone call where we can have a verbal discussion and avoid you having to fill out forms or send in a list of supporting documents to start with.  That may all be required, but let's first review the options available as quickly as possible before getting into the application and funding process.

Give me a call today at 289 816 0075.

I look forward to speaking with you.

Brent Finlay  

Equipment Sale And Leaseback Versus
Equipment Refinancing

Equipment sale and leaseback transactions occur regularly on both new and used equipment as well as equipment acquisitions versus equipment refinancing transactions. Let's explore each of these. For an asset purchase that has taken place within the last 6 months, for either new or used equipment, a sale and lease back transaction can be arranged to sell the asset acquired to a leasing company.

This is most commonly done in situations where the business owner acquires an asset for cash and then wants to finance it after the fact so that less cash is tied up in the asset.

As an example, there can be situations where the best deal is a cash purchase and the time frame for completion is very short.  So the business owner utilizes cash or operating credit to acquire the asset quickly in order to not miss out on the buying opportunity.  Then, once the asset is secured, long term financing is arranged.

While this may seem a bit backwards with the financing being arranged after the purchase, it is actually a fairly common transaction.

But the key to making it work is to start working on the lease financing options right away as most leasing companies will only consider this type of transaction up to 6 months after the time of purchase.

When you work within the 6 month period, you also are going to get the benefit of the better rates and leverage available as leasing companies essentially treat these transactions like a to be completed purchase.

The other type of equipment sale and leaseback transaction, which has become more popular in the last few years, is the selling of assets owned longer than 6 months for the purpose of generating incremental capital for the business.

In most of these cases, the assets being offered to  a leasing company were already financed once and paid off or nearly paid off, resulting in equity being available to leverage again.

This type of used equipment financing or refinancing is viewed more conservatively by equipment leasing companies compared to a new acquisition or one completed in the last 6 months.

This is due to the fact that its harder for a leasing company to put a true value on equipment that has been owned and operated by a business for a substantial period of time without incurring a considerable amount of cost.

While third party appraisals are relied on, the leasing companies will also take the most conservative view of here and typically consider up to 75% of forced liquidation value as a potential financing amount.

Regardless of the lower level of leverage available, equipment sale and leaseback transactions on owned equipment can be an important source of business financing for both working capital and fixed capital investment.

If you are interested in a sale and leaseback financing for a recently completed purchase or an equipment refinancing requirement, I suggest that you give us a call so we can quickly assess your situation and provide equipment sale and lease back options for your consideration.

 

Call 1 289 816 0075 and Speak Directly To An Equipment Leasing Specialist Or Click Here To Send Us An Email

Click Here To Speak Directly With An Equipment Leasing And Financing Specialist

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