A sale-leaseback lets you sell equipment you already own — free and clear, or still financed — to a lender, then lease it right back and keep running it without missing a beat. The cash from the sale becomes working capital, debt consolidation, or growth capital, while the equipment never leaves your job site.
We arrange sale-leasebacks as an independent equipment finance broker, not a single lender, so we're not limited to one company's appetite for your equipment type or credit profile. Sale-leaseback underwriting varies a lot by lender — some specialize in rolling stock, others in manufacturing or construction assets — and we know which ones actually close on deals like yours.
Businesses use sale-leasebacks to bridge a slow receivables cycle, fund a new location, buy out a partner, or simply free up capital that's sitting idle in equity on paid-off machinery — without selling the equipment itself.
Frequently Asked Questions
- What is an equipment sale-leaseback and how does it work?
- You sell equipment you already own to a lender for its appraised value, then immediately lease it back and keep using it without interruption. The sale proceeds become working capital, and your lease payments replace whatever you were paying (or the equity you had tied up) before.
- Can I get a sale-leaseback if I still owe money on the equipment?
- Yes. We arrange sale-leasebacks on equipment that still has an outstanding loan balance — the lender pays off the existing lien as part of the transaction, and you lease the equipment going forward. You're essentially refinancing the equity, not just the debt.
- How much can I raise against equipment I already own?
- It depends on the equipment's appraised fair market value, age, and condition — typically 60-90% of current value. Well-maintained equipment with a strong resale market (trucks, construction equipment, manufacturing machinery) generally supports higher advance rates.
- Will I lose access to the equipment during a sale-leaseback?
- No. The whole point of a sale-leaseback is continuity — you keep operating the equipment on the same job sites and schedules, the only thing that changes is who holds title and the payment you make each month.
- What types of equipment qualify for sale-leaseback financing?
- Most income-producing equipment with resale value qualifies: construction and heavy equipment, manufacturing machinery, transportation and fleet vehicles, medical equipment, and specialized industrial assets. Lenders look at age, usage hours or mileage, and marketability.
- Are sale-leaseback payments tax deductible?
- Lease payments are often deductible as an operating expense, which is one reason businesses use sale-leasebacks to raise capital without adding conventional debt to the balance sheet. This isn't tax advice — talk to your accountant about how it applies to your situation.