What is a Sale & Leaseback of Equipment?
A financial solution in which a business has ownership of a piece of equipment, sells it to a financial institution (such as ILS), in order to lease it back from ILS for a specific period of time.
The purpose of a Sale and Leaseback is to enable businesses to raise money by off-loading equipment assets at fair market value to a buyer who will take over the investment on the piece of equipment.
A new lease agreement is created where the business leases the equipment from the buyer for a particular time perioud. At the end of the lease agreement, options to renew the lease or buy backthe equipment is available
Benefits of a Leaseback
Boost cash flow & set aside capital for other business expenses
All types of commercial equipment is eligible
Equipment costing up to $500K qualifies