Refinancing Equipment: Sale Leaseback Financing for Vehicles and Equipment to Get Cash Out Of Fixed Assets

Your growing company needs a cash injection *fast*, the bank is dragging its heals and a lucrative opportunity may be slipping away. What to do?

Use the valuable equipment already in your business to extract cash to grow your company. Whether machine tools, construction equipment, yellow iron, or specialty machinery, we can leverage the value of used items to provide funds when you need them.

Likewise, if you own your late model car, light truck or van, and it is used for business purposes, consider rolling it into your company and extracting most of its value through a new lease. Essentially, you will be selling us your vehicle and leasing it back from us over a fixed term, at a fixed payment and a set residual value, and the new payments would come from your company account.

Suddenly, you are making your payments on a before tax basis. Mmmm…

To clarify, you may own the vehicle personally, or perhaps it is already owned by the company. It may even have other financing in place (we’ll pay it out for you). It really doesn’t matter to us as long as the vehicle is less than 5 years old, and mileage is under 80,000 kms. We will structure a new lease for you, perhaps with a longer term, higher residual and a lower payment than you even imagined was possible. We will pay you within 2-3 business days from receipt of updated insurance confirmation and registration.

There is no catch, but there is some paperwork involved. To verify your ownership, or title to the equipment, we need a copy of the current registration (or original invoice), and, if your company does not yet have an active commercial credit bureau we may need to review your company financial statements. Also, given this is a somewhat riskier way for us to build our leasing portfolio, your credit history is an important factor in getting the transaction approved on our best terms.

On the other hand, even if your credit or the age of the vehicle are at issue, we may *still* have a solution for you. It may not be as pretty or cost effective, but usually there is a way.

Similarly, if you recently purchased equipment and would prefer to extract the cash rather than having it tied up as just another fixed asset, send us the receipt and proof of payment and we will get to work.

Please give Frank a call at 403-701-5877 to discuss your requirements.


Hat tip to Ron Byskal (thanks Ron!)

About Frank Penkala

A self-employed finance guy who you can reach most of the time at (403) 701-5877. Fixer of interesting commercial lease financing challenges. The journey just seems to be getting more interesting. An active supporter of Kiva, Plan Canada, The Stephen Lewis Foundation and MSF Canada.
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