What is a sale and leaseback arrangement?
Essentially a sale and leaseback is a finance lease. This arrangement allows you to unlock working capital tied up in your commercial fleet, property and equipment. Essentially your lender will purchase depreciating assets from you then allow you to lease these back. So while your lender holds ownership you retain complete use and productive value from these assets. That means:
- Greater capital liquidity as you can be paid cash for your asset(s)
- More working capital to pour into business growth
- Opportunity to generate new income streams with enhanced capabilities from your new asset(s)
Typically we arrange a sale and leaseback for assets greater than $50,000 in value. If you would like to speak to one of our commercial loan consultants about a sale and leaseback for your business, contact +1 515-518-8230.
How is a sale and leaseback good for your business?
We will purchase your assets in accordance with industry standards and/or the value based on trade publications. And you can be paid in cash for these asset(s).
What are the benefits of a sale and leaseback?
- Cash in your bank
- Clear your balance sheet
- Monthly repayments
- No residual
- Non-homeowners considered
- Bad credit history is not a problem
What assets can be used in a sale and leaseback?
- Machinery and/or equipment including:
- Farm equipment
- Agricultural equipment
- Construction equipment
- Heavy and light commercial vehicles and equipment