How to turn your equipment into cash with a sale-leaseback.

By: CWB National Leasing

As a business owner, you know that managing cash flow is integral to your success.

Having cash on hand keeps you nimble and allows you to keep up with expenses, deal with disruptions and make the most of opportunities that come your way. Of course, this is why many business owners choose to save their cash and finance their equipment. 

However, if you’ve recently paid for a piece of equipment in full, and you’re wishing your cash wasn’t tied up, it’s likely not too late! You may be able to turn your assets into cash and inject capital back into your business with a sale-leaseback. 

Here's how a sale-leaseback works.

With a sale-leaseback, you sell your existing equipment for fair market value to a financing company. The lender becomes the equipment owner, and you make lease payments on the equipment over the term of the lease. The result is that your cash flow gets a boost while still having access to your equipment.

Here are some ways business owners benefit from sale-leasebacks:

Cash in hand, growth on the horizon.

Sale-leaseback programs help you leverage the equity in your equipment to free-up working capital. You can use your funds where they can make the most impact.

Easier budgeting.

Making periodic payments that match your revenue can make it easier to manage your cash flow. Your equipment cost becomes a predictable bill you can budget for. We can often customize the payment schedule to best match your revenue. 

Retain use of equipment.

During the lease term, you retain use of the equipment. At the end of the lease, you can own the equipment once again, often for as little as one dollar. Our team will take you through your end-of-lease options while setting up your lease. 

Is a sale-leaseback right for my business?

If you’re considering a sale-leaseback to inject cash into your business, reach out and speak to one of our experts to see if your equipment is eligible. Factors such as equipment type, age, condition and depreciation can determine your equipment's eligibility.

If you have a high-value asset that holds its value, a sale-leaseback may be your competitive advantage. Bring us on board—we'd love to steer you toward a solution that fits your needs.

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